Full Text of HB7031 093rd General Assembly
HB7031 93RD GENERAL ASSEMBLY
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93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 HB7031
Introduced 02/09/04, by George Scully Jr. SYNOPSIS AS INTRODUCED: |
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30 ILCS 105/5.625 new |
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30 ILCS 105/6z-61 new |
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35 ILCS 5/201 |
from Ch. 120, par. 2-201 |
35 ILCS 5/202.5 new |
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35 ILCS 5/804 |
from Ch. 120, par. 8-804 |
35 ILCS 5/901 |
from Ch. 120, par. 9-901 |
35 ILCS 200/18-178 new |
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35 ILCS 200/18-255 |
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35 ILCS 200/20-15 |
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35 ILCS 200/21-30 |
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Amends the State Finance Act, the Illinois Income Tax Act, and the Property
Tax
Code. Beginning on July 1, 2004, increases income taxes and provides that
two-thirds of
the increased revenue shall be deposited into the School District Property Tax
Relief
Fund to fund property tax abatements and that one-third of the increased
revenue shall be
deposited into the Common School Fund. Provides a mechanism for property tax
abatements.
Effective July 1, 2004.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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HB7031 |
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LRB093 16600 SJM 42249 b |
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| AN ACT concerning schools.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| ARTICLE 15
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| | 6 |
| Section 15-5. The Property Tax Code is amended by changing
| 7 |
| The State Finance Act is amended by adding Sections
5.625 and | 8 |
| 6z-61 as follows:
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| (30 ILCS 105/5.625 new)
| 10 |
| Sec. 5.625. The School District Property Tax Relief Fund. | 11 |
| (30 ILCS 105/6z-61 new)
| 12 |
| Sec. 6z-61. School District Property Tax Relief Fund. The
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| School District Property Tax Relief Fund is created as a | 14 |
| special fund in the
State
treasury. All interest earned on | 15 |
| moneys in the Fund shall be deposited into
the Fund.
| 16 |
| (a) As used in this Section:
| 17 |
| "Department" means the Illinois Department of Revenue.
| 18 |
| "School district property tax relief grant"
means
the
money | 19 |
| designated to be distributed to a school district from the | 20 |
| moneys
appropriated by
the General Assembly from the School | 21 |
| District Property Tax Relief Fund.
| 22 |
| (b) On November 15, 16, or 17 of each year
beginning in | 23 |
| 2004, the Department must
certify
the amount of money available | 24 |
| for school district property tax relief grants.
The amount
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| available is equal to the amount appropriated by the General | 26 |
| Assembly or the
unencumbered amount in the Fund at the time of | 27 |
| certification, whichever is
less.
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| (c) On November 15, 16, or 17 of each year
beginning in | 29 |
| 2004, the Department must
calculate
each school district's | 30 |
| grant amount.
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| The amount of the grant for each
school
district for a tax | 2 |
| year is calculated as follows: (i) each school district must
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| certify to the Department the rate of the tax extended for | 4 |
| educational purposes
for the
2001 tax year
(payable in 2002) | 5 |
| for the school district; (ii) the Department must determine
the | 6 |
| equalized assessed value (EAV) of
all taxable
property in the | 7 |
| school district for the tax year preceding the then current tax
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| year; (iii) the rate determined in item (i) is multiplied by | 9 |
| the EAV determined
in item (ii); (iv) the amounts determined in | 10 |
| item (iii) for all school
districts are
added
together to reach | 11 |
| an aggregate total for all school districts; and (v) the
amount | 12 |
| certified
by the Department as available for distribution for | 13 |
| that tax year
is multiplied by the amount determined in item | 14 |
| (iii) and then the product is
divided by the amount determined | 15 |
| in item (iv). The result determined in item
(v)
is the grant | 16 |
| amount for the tax year. For example:
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| (1) Total grant amount certified by the Department for | 18 |
| the
tax year is $5,000,000 to be distributed to school | 19 |
| districts A and B.
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| (2) School district A:
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| (A) Tax rate for educational purposes for the 2001 | 22 |
| tax year was
1.50%.
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| (B) Equalized assessed value of all taxable | 24 |
| property in school district
A for the preceding tax | 25 |
| year was $50,000,000.
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| (3) School district B:
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| (A) Tax rate for educational purposes for the 2001 | 28 |
| tax year was
1.35%.
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| (B) Equalized assessed value of all taxable | 30 |
| property in school district
B for the preceding tax | 31 |
| year was $75,000,000.
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| For school district A, the tax rate multiplied by the preceding | 33 |
| tax year's
equalized assessed
value of all taxable property is | 34 |
| $750,000 (1.50% multiplied by $50,000,000).
For
school
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| district B, the tax rate multiplied by the preceding tax year's | 36 |
| equalized
assessed
value of all
taxable property is $1,012,500 |
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| (1.35% multiplied by $75,000,000). The sum of
these 2
amounts | 2 |
| is $1,762,500. The grant for school district A is $5,000,000 | 3 |
| (the total
amount of grant moneys available) multiplied by
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| $750,000 and then the product is divided by
$1,762,500.
School
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| district A's grant is $2,127,660. The grant for school district | 6 |
| B
is $5,000,000 (the total amount of grant
moneys
available)
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| multiplied
by
$1,012,500 and then the product is divided
by | 8 |
| $1,762,500.
School district B's grant is $2,872,340.
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| The Department must adopt rules to determine the | 10 |
| computation of the grant
amount for a school district that has | 11 |
| undergone school district reorganization
under
Article 7, 7A, | 12 |
| 11A, 11B, or 11D of the School Code (for example: | 13 |
| consolidation,
conversion into a different type of district, or | 14 |
| creation of a new district).
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| (d) On November 15, 16, or 17 of each year
beginning in | 16 |
| 2004, the Department must
certify to
the county clerk of each | 17 |
| county the amount of the grant for each school
district lying
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| wholly or partly in the county to be paid to the county | 19 |
| collector for
distribution to the
school district. The amount | 20 |
| of the grant for a school district that lies
partly in the
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| county shall be that amount which bears the same ratio to the | 22 |
| grant for the
whole school
district as the equalized assessed | 23 |
| value of the taxable property in the school
district for the | 24 |
| preceding tax year that
lies in the county bears to the | 25 |
| equalized assessed value of all taxable
property in the
school | 26 |
| district for the preceding tax year.
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| (e) Upon receipt of a notice from the county clerk required | 28 |
| under Section
18-178
of
the Property Tax Code that the | 29 |
| extension for educational purposes has been
determined
and | 30 |
| abated for each school district or part of a school
district in | 31 |
| the
county, the Department must certify to the Comptroller the | 32 |
| amount of
the
school district property tax relief grant to be | 33 |
| paid to the county collector.
The
Comptroller must promptly pay | 34 |
| the grants to the county collector. Upon receipt
of the
school | 35 |
| district property tax relief grants, the county collector must | 36 |
| pay the
grants to the
respective school districts within 5 |
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| business days.
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| Section 15-10. The Illinois Income Tax Act is amended by | 3 |
| changing
Sections 201, 804, and 901 and by adding Section 202.5 | 4 |
| as follows:
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| (35 ILCS 5/201) (from Ch. 120, par. 2-201)
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| Sec. 201. Tax Imposed.
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| (a) In general. A tax measured by net income is hereby | 8 |
| imposed on every
individual, corporation, trust and estate for | 9 |
| each taxable year ending
after July 31, 1969 on the privilege | 10 |
| of earning or receiving income in or
as a resident of this | 11 |
| State. Such tax shall be in addition to all other
occupation or | 12 |
| privilege taxes imposed by this State or by any municipal
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| corporation or political subdivision thereof.
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| (b) Rates. The tax imposed by subsection (a) of this | 15 |
| Section shall be
determined as follows, except as adjusted by | 16 |
| subsection (d-1):
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| (1) In the case of an individual, trust or estate, for | 18 |
| taxable years
ending prior to July 1, 1989, an amount equal | 19 |
| to 2 1/2% of the taxpayer's
net income for the taxable | 20 |
| year.
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| (2) In the case of an individual, trust or estate, for | 22 |
| taxable years
beginning prior to July 1, 1989 and ending | 23 |
| after June 30, 1989, an amount
equal to the sum of (i) 2 | 24 |
| 1/2% of the taxpayer's net income for the period
prior to | 25 |
| July 1, 1989, as calculated under Section 202.3, and (ii) | 26 |
| 3% of the
taxpayer's net income for the period after June | 27 |
| 30, 1989, as calculated
under Section 202.3.
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| (3) In the case of an individual, trust or estate, for | 29 |
| taxable years
beginning after June 30, 1989 and ending | 30 |
| prior to July 1, 2004 , an amount equal to 3% of the | 31 |
| taxpayer's net
income for the taxable year.
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| (4) In the case of an individual, trust, or estate, for | 33 |
| taxable years
beginning
prior to July 1,
2004 and ending | 34 |
| after June 30, 2004, an amount equal to the sum of (i) 3% |
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| of
the
taxpayer's net income for the period prior to July | 2 |
| 1, 2004, as calculated under
Section
202.5, and (ii) 4% of | 3 |
| the taxpayer's net income for the period after June 30,
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| 2004, as
calculated under Section 202.5
(Blank) .
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| (5) In the case of an individual, trust, or estate, for | 6 |
| taxable years
beginning
after June 30,
2004, an amount | 7 |
| equal to 4% of the taxpayer's net income for the taxable | 8 |
| year
(Blank) .
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| (6) In the case of a corporation, for taxable years
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| ending prior to July 1, 1989, an amount equal to 4% of the
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| taxpayer's net income for the taxable year.
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| (7) In the case of a corporation, for taxable years | 13 |
| beginning prior to
July 1, 1989 and ending after June 30, | 14 |
| 1989, an amount equal to the sum of
(i) 4% of the | 15 |
| taxpayer's net income for the period prior to July 1, 1989,
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| as calculated under Section 202.3, and (ii) 4.8% of the | 17 |
| taxpayer's net
income for the period after June 30, 1989, | 18 |
| as calculated under Section
202.3.
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| (8) In the case of a corporation, for taxable years | 20 |
| beginning after
June 30, 1989 and ending prior to July 1, | 21 |
| 2004 , an amount equal to 4.8% of the taxpayer's net income | 22 |
| for the
taxable year.
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| (9) In the case of a corporation, for taxable years | 24 |
| beginning prior to July
1,
2004 and ending after June 30, | 25 |
| 2004, an amount equal to the sum of (i) 4.8% of
the | 26 |
| taxpayer's net income for the period prior to July 1, 2004, | 27 |
| as calculated
under
Section 202.5, and (ii) 6.4% of the | 28 |
| taxpayer's net income for the period after
June
30, 2004,
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| as calculated under Section 202.5.
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| (10) In the case of a corporation, for taxable years | 31 |
| beginning after
June 30, 2004, an amount equal to 6.4% of | 32 |
| the taxpayer's net income for the
taxable year.
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| (c) Personal Property Tax Replacement Income Tax.
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| Beginning on July 1, 1979 and thereafter, in addition to such | 35 |
| income
tax, there is also hereby imposed the Personal Property | 36 |
| Tax Replacement
Income Tax measured by net income on every |
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| corporation (including Subchapter
S corporations), partnership | 2 |
| and trust, for each taxable year ending after
June 30, 1979. | 3 |
| Such taxes are imposed on the privilege of earning or
receiving | 4 |
| income in or as a resident of this State. The Personal Property
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| Tax Replacement Income Tax shall be in addition to the income | 6 |
| tax imposed
by subsections (a) and (b) of this Section and in | 7 |
| addition to all other
occupation or privilege taxes imposed by | 8 |
| this State or by any municipal
corporation or political | 9 |
| subdivision thereof.
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| (d) Additional Personal Property Tax Replacement Income | 11 |
| Tax Rates.
The personal property tax replacement income tax | 12 |
| imposed by this subsection
and subsection (c) of this Section | 13 |
| in the case of a corporation, other
than a Subchapter S | 14 |
| corporation and except as adjusted by subsection (d-1),
shall | 15 |
| be an additional amount equal to
2.85% of such taxpayer's net | 16 |
| income for the taxable year, except that
beginning on January | 17 |
| 1, 1981, and thereafter, the rate of 2.85% specified
in this | 18 |
| subsection shall be reduced to 2.5%, and in the case of a
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| partnership, trust or a Subchapter S corporation shall be an | 20 |
| additional
amount equal to 1.5% of such taxpayer's net income | 21 |
| for the taxable year.
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| (d-1) Rate reduction for certain foreign insurers. In the | 23 |
| case of a
foreign insurer, as defined by Section 35A-5 of the | 24 |
| Illinois Insurance Code,
whose state or country of domicile | 25 |
| imposes on insurers domiciled in Illinois
a retaliatory tax | 26 |
| (excluding any insurer
whose premiums from reinsurance assumed | 27 |
| are 50% or more of its total insurance
premiums as determined | 28 |
| under paragraph (2) of subsection (b) of Section 304,
except | 29 |
| that for purposes of this determination premiums from | 30 |
| reinsurance do
not include premiums from inter-affiliate | 31 |
| reinsurance arrangements),
beginning with taxable years ending | 32 |
| on or after December 31, 1999,
the sum of
the rates of tax | 33 |
| imposed by subsections (b) and (d) shall be reduced (but not
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| increased) to the rate at which the total amount of tax imposed | 35 |
| under this Act,
net of all credits allowed under this Act, | 36 |
| shall equal (i) the total amount of
tax that would be imposed |
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| on the foreign insurer's net income allocable to
Illinois for | 2 |
| the taxable year by such foreign insurer's state or country of
| 3 |
| domicile if that net income were subject to all income taxes | 4 |
| and taxes
measured by net income imposed by such foreign | 5 |
| insurer's state or country of
domicile, net of all credits | 6 |
| allowed or (ii) a rate of zero if no such tax is
imposed on such | 7 |
| income by the foreign insurer's state of domicile.
For the | 8 |
| purposes of this subsection (d-1), an inter-affiliate includes | 9 |
| a
mutual insurer under common management.
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| (1) For the purposes of subsection (d-1), in no event | 11 |
| shall the sum of the
rates of tax imposed by subsections | 12 |
| (b) and (d) be reduced below the rate at
which the sum of:
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| (A) the total amount of tax imposed on such foreign | 14 |
| insurer under
this Act for a taxable year, net of all | 15 |
| credits allowed under this Act, plus
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| (B) the privilege tax imposed by Section 409 of the | 17 |
| Illinois Insurance
Code, the fire insurance company | 18 |
| tax imposed by Section 12 of the Fire
Investigation | 19 |
| Act, and the fire department taxes imposed under | 20 |
| Section 11-10-1
of the Illinois Municipal Code,
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| equals 1.25% for taxable years ending prior to December 31, | 22 |
| 2003, or
1.75% for taxable years ending on or after | 23 |
| December 31, 2003, of the net
taxable premiums written for | 24 |
| the taxable year,
as described by subsection (1) of Section | 25 |
| 409 of the Illinois Insurance Code.
This paragraph will in | 26 |
| no event increase the rates imposed under subsections
(b) | 27 |
| and (d).
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| (2) Any reduction in the rates of tax imposed by this | 29 |
| subsection shall be
applied first against the rates imposed | 30 |
| by subsection (b) and only after the
tax imposed by | 31 |
| subsection (a) net of all credits allowed under this | 32 |
| Section
other than the credit allowed under subsection (i) | 33 |
| has been reduced to zero,
against the rates imposed by | 34 |
| subsection (d).
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| This subsection (d-1) is exempt from the provisions of | 36 |
| Section 250.
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| (e) Investment credit. A taxpayer shall be allowed a credit
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| against the Personal Property Tax Replacement Income Tax for
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| investment in qualified property.
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| (1) A taxpayer shall be allowed a credit equal to .5% | 5 |
| of
the basis of qualified property placed in service during | 6 |
| the taxable year,
provided such property is placed in | 7 |
| service on or after
July 1, 1984. There shall be allowed an | 8 |
| additional credit equal
to .5% of the basis of qualified | 9 |
| property placed in service during the
taxable year, | 10 |
| provided such property is placed in service on or
after | 11 |
| July 1, 1986, and the taxpayer's base employment
within | 12 |
| Illinois has increased by 1% or more over the preceding | 13 |
| year as
determined by the taxpayer's employment records | 14 |
| filed with the
Illinois Department of Employment Security. | 15 |
| Taxpayers who are new to
Illinois shall be deemed to have | 16 |
| met the 1% growth in base employment for
the first year in | 17 |
| which they file employment records with the Illinois
| 18 |
| Department of Employment Security. The provisions added to | 19 |
| this Section by
Public Act 85-1200 (and restored by Public | 20 |
| Act 87-895) shall be
construed as declaratory of existing | 21 |
| law and not as a new enactment. If,
in any year, the | 22 |
| increase in base employment within Illinois over the
| 23 |
| preceding year is less than 1%, the additional credit shall | 24 |
| be limited to that
percentage times a fraction, the | 25 |
| numerator of which is .5% and the denominator
of which is | 26 |
| 1%, but shall not exceed .5%. The investment credit shall | 27 |
| not be
allowed to the extent that it would reduce a | 28 |
| taxpayer's liability in any tax
year below zero, nor may | 29 |
| any credit for qualified property be allowed for any
year | 30 |
| other than the year in which the property was placed in | 31 |
| service in
Illinois. For tax years ending on or after | 32 |
| December 31, 1987, and on or
before December 31, 1988, the | 33 |
| credit shall be allowed for the tax year in
which the | 34 |
| property is placed in service, or, if the amount of the | 35 |
| credit
exceeds the tax liability for that year, whether it | 36 |
| exceeds the original
liability or the liability as later |
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| amended, such excess may be carried
forward and applied to | 2 |
| the tax liability of the 5 taxable years following
the | 3 |
| excess credit years if the taxpayer (i) makes investments | 4 |
| which cause
the creation of a minimum of 2,000 full-time | 5 |
| equivalent jobs in Illinois,
(ii) is located in an | 6 |
| enterprise zone established pursuant to the Illinois
| 7 |
| Enterprise Zone Act and (iii) is certified by the | 8 |
| Department of Commerce
and Community Affairs (now | 9 |
| Department of Commerce and Economic Opportunity) as | 10 |
| complying with the requirements specified in
clause (i) and | 11 |
| (ii) by July 1, 1986. The Department of Commerce and
| 12 |
| Community Affairs (now Department of Commerce and Economic | 13 |
| Opportunity) shall notify the Department of Revenue of all | 14 |
| such
certifications immediately. For tax years ending | 15 |
| after December 31, 1988,
the credit shall be allowed for | 16 |
| the tax year in which the property is
placed in service, | 17 |
| or, if the amount of the credit exceeds the tax
liability | 18 |
| for that year, whether it exceeds the original liability or | 19 |
| the
liability as later amended, such excess may be carried | 20 |
| forward and applied
to the tax liability of the 5 taxable | 21 |
| years following the excess credit
years. The credit shall | 22 |
| be applied to the earliest year for which there is
a | 23 |
| liability. If there is credit from more than one tax year | 24 |
| that is
available to offset a liability, earlier credit | 25 |
| shall be applied first.
| 26 |
| (2) The term "qualified property" means property | 27 |
| which:
| 28 |
| (A) is tangible, whether new or used, including | 29 |
| buildings and structural
components of buildings and | 30 |
| signs that are real property, but not including
land or | 31 |
| improvements to real property that are not a structural | 32 |
| component of a
building such as landscaping, sewer | 33 |
| lines, local access roads, fencing, parking
lots, and | 34 |
| other appurtenances;
| 35 |
| (B) is depreciable pursuant to Section 167 of the | 36 |
| Internal Revenue Code,
except that "3-year property" |
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| as defined in Section 168(c)(2)(A) of that
Code is not | 2 |
| eligible for the credit provided by this subsection | 3 |
| (e);
| 4 |
| (C) is acquired by purchase as defined in Section | 5 |
| 179(d) of
the Internal Revenue Code;
| 6 |
| (D) is used in Illinois by a taxpayer who is | 7 |
| primarily engaged in
manufacturing, or in mining coal | 8 |
| or fluorite, or in retailing; and
| 9 |
| (E) has not previously been used in Illinois in | 10 |
| such a manner and by
such a person as would qualify for | 11 |
| the credit provided by this subsection
(e) or | 12 |
| subsection (f).
| 13 |
| (3) For purposes of this subsection (e), | 14 |
| "manufacturing" means
the material staging and production | 15 |
| of tangible personal property by
procedures commonly | 16 |
| regarded as manufacturing, processing, fabrication, or
| 17 |
| assembling which changes some existing material into new | 18 |
| shapes, new
qualities, or new combinations. For purposes of | 19 |
| this subsection
(e) the term "mining" shall have the same | 20 |
| meaning as the term "mining" in
Section 613(c) of the | 21 |
| Internal Revenue Code. For purposes of this subsection
(e), | 22 |
| the term "retailing" means the sale of tangible personal | 23 |
| property or
services rendered in conjunction with the sale | 24 |
| of tangible consumer goods
or commodities.
| 25 |
| (4) The basis of qualified property shall be the basis
| 26 |
| used to compute the depreciation deduction for federal | 27 |
| income tax purposes.
| 28 |
| (5) If the basis of the property for federal income tax | 29 |
| depreciation
purposes is increased after it has been placed | 30 |
| in service in Illinois by
the taxpayer, the amount of such | 31 |
| increase shall be deemed property placed
in service on the | 32 |
| date of such increase in basis.
| 33 |
| (6) The term "placed in service" shall have the same
| 34 |
| meaning as under Section 46 of the Internal Revenue Code.
| 35 |
| (7) If during any taxable year, any property ceases to
| 36 |
| be qualified property in the hands of the taxpayer within |
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| 48 months after
being placed in service, or the situs of | 2 |
| any qualified property is
moved outside Illinois within 48 | 3 |
| months after being placed in service, the
Personal Property | 4 |
| Tax Replacement Income Tax for such taxable year shall be
| 5 |
| increased. Such increase shall be determined by (i) | 6 |
| recomputing the
investment credit which would have been | 7 |
| allowed for the year in which
credit for such property was | 8 |
| originally allowed by eliminating such
property from such | 9 |
| computation and, (ii) subtracting such recomputed credit
| 10 |
| from the amount of credit previously allowed. For the | 11 |
| purposes of this
paragraph (7), a reduction of the basis of | 12 |
| qualified property resulting
from a redetermination of the | 13 |
| purchase price shall be deemed a disposition
of qualified | 14 |
| property to the extent of such reduction.
| 15 |
| (8) Unless the investment credit is extended by law, | 16 |
| the
basis of qualified property shall not include costs | 17 |
| incurred after
December 31, 2003, except for costs incurred | 18 |
| pursuant to a binding
contract entered into on or before | 19 |
| December 31, 2003.
| 20 |
| (9) Each taxable year ending before December 31, 2000, | 21 |
| a partnership may
elect to pass through to its
partners the | 22 |
| credits to which the partnership is entitled under this | 23 |
| subsection
(e) for the taxable year. A partner may use the | 24 |
| credit allocated to him or her
under this paragraph only | 25 |
| against the tax imposed in subsections (c) and (d) of
this | 26 |
| Section. If the partnership makes that election, those | 27 |
| credits shall be
allocated among the partners in the | 28 |
| partnership in accordance with the rules
set forth in | 29 |
| Section 704(b) of the Internal Revenue Code, and the rules
| 30 |
| promulgated under that Section, and the allocated amount of | 31 |
| the credits shall
be allowed to the partners for that | 32 |
| taxable year. The partnership shall make
this election on | 33 |
| its Personal Property Tax Replacement Income Tax return for
| 34 |
| that taxable year. The election to pass through the credits | 35 |
| shall be
irrevocable.
| 36 |
| For taxable years ending on or after December 31, 2000, |
|
|
|
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| 1 |
| a
partner that qualifies its
partnership for a subtraction | 2 |
| under subparagraph (I) of paragraph (2) of
subsection (d) | 3 |
| of Section 203 or a shareholder that qualifies a Subchapter | 4 |
| S
corporation for a subtraction under subparagraph (S) of | 5 |
| paragraph (2) of
subsection (b) of Section 203 shall be | 6 |
| allowed a credit under this subsection
(e) equal to its | 7 |
| share of the credit earned under this subsection (e) during
| 8 |
| the taxable year by the partnership or Subchapter S | 9 |
| corporation, determined in
accordance with the | 10 |
| determination of income and distributive share of
income | 11 |
| under Sections 702 and 704 and Subchapter S of the Internal | 12 |
| Revenue
Code. This paragraph is exempt from the provisions | 13 |
| of Section 250.
| 14 |
| (f) Investment credit; Enterprise Zone.
| 15 |
| (1) A taxpayer shall be allowed a credit against the | 16 |
| tax imposed
by subsections (a) and (b) of this Section for | 17 |
| investment in qualified
property which is placed in service | 18 |
| in an Enterprise Zone created
pursuant to the Illinois | 19 |
| Enterprise Zone Act. For partners, shareholders
of | 20 |
| Subchapter S corporations, and owners of limited liability | 21 |
| companies,
if the liability company is treated as a | 22 |
| partnership for purposes of
federal and State income | 23 |
| taxation, there shall be allowed a credit under
this | 24 |
| subsection (f) to be determined in accordance with the | 25 |
| determination
of income and distributive share of income | 26 |
| under Sections 702 and 704 and
Subchapter S of the Internal | 27 |
| Revenue Code. The credit shall be .5% of the
basis for such | 28 |
| property. The credit shall be available only in the taxable
| 29 |
| year in which the property is placed in service in the | 30 |
| Enterprise Zone and
shall not be allowed to the extent that | 31 |
| it would reduce a taxpayer's
liability for the tax imposed | 32 |
| by subsections (a) and (b) of this Section to
below zero. | 33 |
| For tax years ending on or after December 31, 1985, the | 34 |
| credit
shall be allowed for the tax year in which the | 35 |
| property is placed in
service, or, if the amount of the | 36 |
| credit exceeds the tax liability for that
year, whether it |
|
|
|
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|
| 1 |
| exceeds the original liability or the liability as later
| 2 |
| amended, such excess may be carried forward and applied to | 3 |
| the tax
liability of the 5 taxable years following the | 4 |
| excess credit year.
The credit shall be applied to the | 5 |
| earliest year for which there is a
liability. If there is | 6 |
| credit from more than one tax year that is available
to | 7 |
| offset a liability, the credit accruing first in time shall | 8 |
| be applied
first.
| 9 |
| (2) The term qualified property means property which:
| 10 |
| (A) is tangible, whether new or used, including | 11 |
| buildings and
structural components of buildings;
| 12 |
| (B) is depreciable pursuant to Section 167 of the | 13 |
| Internal Revenue
Code, except that "3-year property" | 14 |
| as defined in Section 168(c)(2)(A) of
that Code is not | 15 |
| eligible for the credit provided by this subsection | 16 |
| (f);
| 17 |
| (C) is acquired by purchase as defined in Section | 18 |
| 179(d) of
the Internal Revenue Code;
| 19 |
| (D) is used in the Enterprise Zone by the taxpayer; | 20 |
| and
| 21 |
| (E) has not been previously used in Illinois in | 22 |
| such a manner and by
such a person as would qualify for | 23 |
| the credit provided by this subsection
(f) or | 24 |
| subsection (e).
| 25 |
| (3) The basis of qualified property shall be the basis | 26 |
| used to compute
the depreciation deduction for federal | 27 |
| income tax purposes.
| 28 |
| (4) If the basis of the property for federal income tax | 29 |
| depreciation
purposes is increased after it has been placed | 30 |
| in service in the Enterprise
Zone by the taxpayer, the | 31 |
| amount of such increase shall be deemed property
placed in | 32 |
| service on the date of such increase in basis.
| 33 |
| (5) The term "placed in service" shall have the same | 34 |
| meaning as under
Section 46 of the Internal Revenue Code.
| 35 |
| (6) If during any taxable year, any property ceases to | 36 |
| be qualified
property in the hands of the taxpayer within |
|
|
|
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|
| 1 |
| 48 months after being placed
in service, or the situs of | 2 |
| any qualified property is moved outside the
Enterprise Zone | 3 |
| within 48 months after being placed in service, the tax
| 4 |
| imposed under subsections (a) and (b) of this Section for | 5 |
| such taxable year
shall be increased. Such increase shall | 6 |
| be determined by (i) recomputing
the investment credit | 7 |
| which would have been allowed for the year in which
credit | 8 |
| for such property was originally allowed by eliminating | 9 |
| such
property from such computation, and (ii) subtracting | 10 |
| such recomputed credit
from the amount of credit previously | 11 |
| allowed. For the purposes of this
paragraph (6), a | 12 |
| reduction of the basis of qualified property resulting
from | 13 |
| a redetermination of the purchase price shall be deemed a | 14 |
| disposition
of qualified property to the extent of such | 15 |
| reduction.
| 16 |
| (g) Jobs Tax Credit; Enterprise Zone and Foreign Trade | 17 |
| Zone or Sub-Zone.
| 18 |
| (1) A taxpayer conducting a trade or business in an | 19 |
| enterprise zone
or a High Impact Business designated by the | 20 |
| Department of Commerce and
Economic Opportunity
Community | 21 |
| Affairs conducting a trade or business in a federally | 22 |
| designated
Foreign Trade Zone or Sub-Zone shall be allowed | 23 |
| a credit against the tax
imposed by subsections (a) and (b) | 24 |
| of this Section in the amount of $500
per eligible employee | 25 |
| hired to work in the zone during the taxable year.
| 26 |
| (2) To qualify for the credit:
| 27 |
| (A) the taxpayer must hire 5 or more eligible | 28 |
| employees to work in an
enterprise zone or federally | 29 |
| designated Foreign Trade Zone or Sub-Zone
during the | 30 |
| taxable year;
| 31 |
| (B) the taxpayer's total employment within the | 32 |
| enterprise zone or
federally designated Foreign Trade | 33 |
| Zone or Sub-Zone must
increase by 5 or more full-time | 34 |
| employees beyond the total employed in that
zone at the | 35 |
| end of the previous tax year for which a jobs tax
| 36 |
| credit under this Section was taken, or beyond the |
|
|
|
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|
| 1 |
| total employed by the
taxpayer as of December 31, 1985, | 2 |
| whichever is later; and
| 3 |
| (C) the eligible employees must be employed 180 | 4 |
| consecutive days in
order to be deemed hired for | 5 |
| purposes of this subsection.
| 6 |
| (3) An "eligible employee" means an employee who is:
| 7 |
| (A) Certified by the Department of Commerce and | 8 |
| Economic Opportunity
Community Affairs
as "eligible | 9 |
| for services" pursuant to regulations promulgated in
| 10 |
| accordance with Title II of the Job Training | 11 |
| Partnership Act, Training
Services for the | 12 |
| Disadvantaged or Title III of the Job Training | 13 |
| Partnership
Act, Employment and Training Assistance | 14 |
| for Dislocated Workers Program.
| 15 |
| (B) Hired after the enterprise zone or federally | 16 |
| designated Foreign
Trade Zone or Sub-Zone was | 17 |
| designated or the trade or
business was located in that | 18 |
| zone, whichever is later.
| 19 |
| (C) Employed in the enterprise zone or Foreign | 20 |
| Trade Zone or
Sub-Zone. An employee is employed in an
| 21 |
| enterprise zone or federally designated Foreign Trade | 22 |
| Zone or Sub-Zone
if his services are rendered there or | 23 |
| it is the base of
operations for the services | 24 |
| performed.
| 25 |
| (D) A full-time employee working 30 or more hours | 26 |
| per week.
| 27 |
| (4) For tax years ending on or after December 31, 1985 | 28 |
| and prior to
December 31, 1988, the credit shall be allowed | 29 |
| for the tax year in which
the eligible employees are hired. | 30 |
| For tax years ending on or after
December 31, 1988, the | 31 |
| credit shall be allowed for the tax year immediately
| 32 |
| following the tax year in which the eligible employees are | 33 |
| hired. If the
amount of the credit exceeds the tax | 34 |
| liability for that year, whether it
exceeds the original | 35 |
| liability or the liability as later amended, such
excess | 36 |
| may be carried forward and applied to the tax liability of |
|
|
|
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|
| 1 |
| the 5
taxable years following the excess credit year. The | 2 |
| credit shall be
applied to the earliest year for which | 3 |
| there is a liability. If there is
credit from more than one | 4 |
| tax year that is available to offset a liability,
earlier | 5 |
| credit shall be applied first.
| 6 |
| (5) The Department of Revenue shall promulgate such | 7 |
| rules and regulations
as may be deemed necessary to carry | 8 |
| out the purposes of this subsection (g).
| 9 |
| (6) The credit shall be available for eligible | 10 |
| employees hired on or
after January 1, 1986.
| 11 |
| (h) Investment credit; High Impact Business.
| 12 |
| (1) Subject to subsections (b) and (b-5) of Section
5.5 | 13 |
| of the Illinois Enterprise Zone Act, a taxpayer shall be | 14 |
| allowed a credit
against the tax imposed by subsections (a) | 15 |
| and (b) of this Section for
investment in qualified
| 16 |
| property which is placed in service by a Department of | 17 |
| Commerce and Economic Opportunity
Community
Affairs
| 18 |
| designated High Impact Business. The credit shall be .5% of | 19 |
| the basis
for such property. The credit shall not be | 20 |
| available (i) until the minimum
investments in qualified | 21 |
| property set forth in subdivision (a)(3)(A) of
Section 5.5 | 22 |
| of the Illinois
Enterprise Zone Act have been satisfied
or | 23 |
| (ii) until the time authorized in subsection (b-5) of the | 24 |
| Illinois
Enterprise Zone Act for entities designated as | 25 |
| High Impact Businesses under
subdivisions (a)(3)(B), | 26 |
| (a)(3)(C), and (a)(3)(D) of Section 5.5 of the Illinois
| 27 |
| Enterprise Zone Act, and shall not be allowed to the extent | 28 |
| that it would
reduce a taxpayer's liability for the tax | 29 |
| imposed by subsections (a) and (b) of
this Section to below | 30 |
| zero. The credit applicable to such investments shall be
| 31 |
| taken in the taxable year in which such investments have | 32 |
| been completed. The
credit for additional investments | 33 |
| beyond the minimum investment by a designated
high impact | 34 |
| business authorized under subdivision (a)(3)(A) of Section | 35 |
| 5.5 of
the Illinois Enterprise Zone Act shall be available | 36 |
| only in the taxable year in
which the property is placed in |
|
|
|
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|
| 1 |
| service and shall not be allowed to the extent
that it | 2 |
| would reduce a taxpayer's liability for the tax imposed by | 3 |
| subsections
(a) and (b) of this Section to below zero.
For | 4 |
| tax years ending on or after December 31, 1987, the credit | 5 |
| shall be
allowed for the tax year in which the property is | 6 |
| placed in service, or, if
the amount of the credit exceeds | 7 |
| the tax liability for that year, whether
it exceeds the | 8 |
| original liability or the liability as later amended, such
| 9 |
| excess may be carried forward and applied to the tax | 10 |
| liability of the 5
taxable years following the excess | 11 |
| credit year. The credit shall be
applied to the earliest | 12 |
| year for which there is a liability. If there is
credit | 13 |
| from more than one tax year that is available to offset a | 14 |
| liability,
the credit accruing first in time shall be | 15 |
| applied first.
| 16 |
| Changes made in this subdivision (h)(1) by Public Act | 17 |
| 88-670
restore changes made by Public Act 85-1182 and | 18 |
| reflect existing law.
| 19 |
| (2) The term qualified property means property which:
| 20 |
| (A) is tangible, whether new or used, including | 21 |
| buildings and
structural components of buildings;
| 22 |
| (B) is depreciable pursuant to Section 167 of the | 23 |
| Internal Revenue
Code, except that "3-year property" | 24 |
| as defined in Section 168(c)(2)(A) of
that Code is not | 25 |
| eligible for the credit provided by this subsection | 26 |
| (h);
| 27 |
| (C) is acquired by purchase as defined in Section | 28 |
| 179(d) of the
Internal Revenue Code; and
| 29 |
| (D) is not eligible for the Enterprise Zone | 30 |
| Investment Credit provided
by subsection (f) of this | 31 |
| Section.
| 32 |
| (3) The basis of qualified property shall be the basis | 33 |
| used to compute
the depreciation deduction for federal | 34 |
| income tax purposes.
| 35 |
| (4) If the basis of the property for federal income tax | 36 |
| depreciation
purposes is increased after it has been placed |
|
|
|
HB7031 |
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|
| 1 |
| in service in a federally
designated Foreign Trade Zone or | 2 |
| Sub-Zone located in Illinois by the taxpayer,
the amount of | 3 |
| such increase shall be deemed property placed in service on
| 4 |
| the date of such increase in basis.
| 5 |
| (5) The term "placed in service" shall have the same | 6 |
| meaning as under
Section 46 of the Internal Revenue Code.
| 7 |
| (6) If during any taxable year ending on or before | 8 |
| December 31, 1996,
any property ceases to be qualified
| 9 |
| property in the hands of the taxpayer within 48 months | 10 |
| after being placed
in service, or the situs of any | 11 |
| qualified property is moved outside
Illinois within 48 | 12 |
| months after being placed in service, the tax imposed
under | 13 |
| subsections (a) and (b) of this Section for such taxable | 14 |
| year shall
be increased. Such increase shall be determined | 15 |
| by (i) recomputing the
investment credit which would have | 16 |
| been allowed for the year in which
credit for such property | 17 |
| was originally allowed by eliminating such
property from | 18 |
| such computation, and (ii) subtracting such recomputed | 19 |
| credit
from the amount of credit previously allowed. For | 20 |
| the purposes of this
paragraph (6), a reduction of the | 21 |
| basis of qualified property resulting
from a | 22 |
| redetermination of the purchase price shall be deemed a | 23 |
| disposition
of qualified property to the extent of such | 24 |
| reduction.
| 25 |
| (7) Beginning with tax years ending after December 31, | 26 |
| 1996, if a
taxpayer qualifies for the credit under this | 27 |
| subsection (h) and thereby is
granted a tax abatement and | 28 |
| the taxpayer relocates its entire facility in
violation of | 29 |
| the explicit terms and length of the contract under Section
| 30 |
| 18-183 of the Property Tax Code, the tax imposed under | 31 |
| subsections
(a) and (b) of this Section shall be increased | 32 |
| for the taxable year
in which the taxpayer relocated its | 33 |
| facility by an amount equal to the
amount of credit | 34 |
| received by the taxpayer under this subsection (h).
| 35 |
| (i) Credit for Personal Property Tax Replacement Income | 36 |
| Tax.
For tax years ending prior to December 31, 2003, a credit |
|
|
|
HB7031 |
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LRB093 16600 SJM 42249 b |
|
| 1 |
| shall be allowed
against the tax imposed by
subsections (a) and | 2 |
| (b) of this Section for the tax imposed by subsections (c)
and | 3 |
| (d) of this Section. This credit shall be computed by | 4 |
| multiplying the tax
imposed by subsections (c) and (d) of this | 5 |
| Section by a fraction, the numerator
of which is base income | 6 |
| allocable to Illinois and the denominator of which is
Illinois | 7 |
| base income, and further multiplying the product by the tax | 8 |
| rate
imposed by subsections (a) and (b) of this Section.
| 9 |
| Any credit earned on or after December 31, 1986 under
this | 10 |
| subsection which is unused in the year
the credit is computed | 11 |
| because it exceeds the tax liability imposed by
subsections (a) | 12 |
| and (b) for that year (whether it exceeds the original
| 13 |
| liability or the liability as later amended) may be carried | 14 |
| forward and
applied to the tax liability imposed by subsections | 15 |
| (a) and (b) of the 5
taxable years following the excess credit | 16 |
| year, provided that no credit may
be carried forward to any | 17 |
| year ending on or
after December 31, 2003. This credit shall be
| 18 |
| applied first to the earliest year for which there is a | 19 |
| liability. If
there is a credit under this subsection from more | 20 |
| than one tax year that is
available to offset a liability the | 21 |
| earliest credit arising under this
subsection shall be applied | 22 |
| first.
| 23 |
| If, during any taxable year ending on or after December 31, | 24 |
| 1986, the
tax imposed by subsections (c) and (d) of this | 25 |
| Section for which a taxpayer
has claimed a credit under this | 26 |
| subsection (i) is reduced, the amount of
credit for such tax | 27 |
| shall also be reduced. Such reduction shall be
determined by | 28 |
| recomputing the credit to take into account the reduced tax
| 29 |
| imposed by subsections (c) and (d). If any portion of the
| 30 |
| reduced amount of credit has been carried to a different | 31 |
| taxable year, an
amended return shall be filed for such taxable | 32 |
| year to reduce the amount of
credit claimed.
| 33 |
| (j) Training expense credit. Beginning with tax years | 34 |
| ending on or
after December 31, 1986 and prior to December 31, | 35 |
| 2003, a taxpayer shall be
allowed a credit against the
tax | 36 |
| imposed by subsections (a) and (b) under this Section
for all |
|
|
|
HB7031 |
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|
| 1 |
| amounts paid or accrued, on behalf of all persons
employed by | 2 |
| the taxpayer in Illinois or Illinois residents employed
outside | 3 |
| of Illinois by a taxpayer, for educational or vocational | 4 |
| training in
semi-technical or technical fields or semi-skilled | 5 |
| or skilled fields, which
were deducted from gross income in the | 6 |
| computation of taxable income. The
credit against the tax | 7 |
| imposed by subsections (a) and (b) shall be 1.6% of
such | 8 |
| training expenses. For partners, shareholders of subchapter S
| 9 |
| corporations, and owners of limited liability companies, if the | 10 |
| liability
company is treated as a partnership for purposes of | 11 |
| federal and State income
taxation, there shall be allowed a | 12 |
| credit under this subsection (j) to be
determined in accordance | 13 |
| with the determination of income and distributive
share of | 14 |
| income under Sections 702 and 704 and subchapter S of the | 15 |
| Internal
Revenue Code.
| 16 |
| Any credit allowed under this subsection which is unused in | 17 |
| the year
the credit is earned may be carried forward to each of | 18 |
| the 5 taxable
years following the year for which the credit is | 19 |
| first computed until it is
used. This credit shall be applied | 20 |
| first to the earliest year for which
there is a liability. If | 21 |
| there is a credit under this subsection from more
than one tax | 22 |
| year that is available to offset a liability the earliest
| 23 |
| credit arising under this subsection shall be applied first. No | 24 |
| carryforward
credit may be claimed in any tax year ending on or | 25 |
| after
December 31, 2003.
| 26 |
| (k) Research and development credit.
| 27 |
| For tax years ending after July 1, 1990 and prior to
| 28 |
| December 31, 2003, a taxpayer shall be
allowed a credit against | 29 |
| the tax imposed by subsections (a) and (b) of this
Section for | 30 |
| increasing research activities in this State. The credit
| 31 |
| allowed against the tax imposed by subsections (a) and (b) | 32 |
| shall be equal
to 6 1/2% of the qualifying expenditures for | 33 |
| increasing research activities
in this State. For partners, | 34 |
| shareholders of subchapter S corporations, and
owners of | 35 |
| limited liability companies, if the liability company is | 36 |
| treated as a
partnership for purposes of federal and State |
|
|
|
HB7031 |
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|
| 1 |
| income taxation, there shall be
allowed a credit under this | 2 |
| subsection to be determined in accordance with the
| 3 |
| determination of income and distributive share of income under | 4 |
| Sections 702 and
704 and subchapter S of the Internal Revenue | 5 |
| Code.
| 6 |
| For purposes of this subsection, "qualifying expenditures" | 7 |
| means the
qualifying expenditures as defined for the federal | 8 |
| credit for increasing
research activities which would be | 9 |
| allowable under Section 41 of the
Internal Revenue Code and | 10 |
| which are conducted in this State, "qualifying
expenditures for | 11 |
| increasing research activities in this State" means the
excess | 12 |
| of qualifying expenditures for the taxable year in which | 13 |
| incurred
over qualifying expenditures for the base period, | 14 |
| "qualifying expenditures
for the base period" means the average | 15 |
| of the qualifying expenditures for
each year in the base | 16 |
| period, and "base period" means the 3 taxable years
immediately | 17 |
| preceding the taxable year for which the determination is
being | 18 |
| made.
| 19 |
| Any credit in excess of the tax liability for the taxable | 20 |
| year
may be carried forward. A taxpayer may elect to have the
| 21 |
| unused credit shown on its final completed return carried over | 22 |
| as a credit
against the tax liability for the following 5 | 23 |
| taxable years or until it has
been fully used, whichever occurs | 24 |
| first; provided that no credit may be
carried forward to any | 25 |
| year ending on or
after December 31, 2003.
| 26 |
| If an unused credit is carried forward to a given year from | 27 |
| 2 or more
earlier years, that credit arising in the earliest | 28 |
| year will be applied
first against the tax liability for the | 29 |
| given year. If a tax liability for
the given year still | 30 |
| remains, the credit from the next earliest year will
then be | 31 |
| applied, and so on, until all credits have been used or no tax
| 32 |
| liability for the given year remains. Any remaining unused | 33 |
| credit or
credits then will be carried forward to the next | 34 |
| following year in which a
tax liability is incurred, except | 35 |
| that no credit can be carried forward to
a year which is more | 36 |
| than 5 years after the year in which the expense for
which the |
|
|
|
HB7031 |
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|
| 1 |
| credit is given was incurred.
| 2 |
| No inference shall be drawn from this amendatory Act of the | 3 |
| 91st General
Assembly in construing this Section for taxable | 4 |
| years beginning before January
1, 1999.
| 5 |
| (l) Environmental Remediation Tax Credit.
| 6 |
| (i) For tax years ending after December 31, 1997 and on | 7 |
| or before
December 31, 2001, a taxpayer shall be allowed a | 8 |
| credit against the tax
imposed by subsections (a) and (b) | 9 |
| of this Section for certain amounts paid
for unreimbursed | 10 |
| eligible remediation costs, as specified in this | 11 |
| subsection.
For purposes of this Section, "unreimbursed | 12 |
| eligible remediation costs" means
costs approved by the | 13 |
| Illinois Environmental Protection Agency ("Agency") under
| 14 |
| Section 58.14 of the Environmental Protection Act that were | 15 |
| paid in performing
environmental remediation at a site for | 16 |
| which a No Further Remediation Letter
was issued by the | 17 |
| Agency and recorded under Section 58.10 of the | 18 |
| Environmental
Protection Act. The credit must be claimed | 19 |
| for the taxable year in which
Agency approval of the | 20 |
| eligible remediation costs is granted. The credit is
not | 21 |
| available to any taxpayer if the taxpayer or any related | 22 |
| party caused or
contributed to, in any material respect, a | 23 |
| release of regulated substances on,
in, or under the site | 24 |
| that was identified and addressed by the remedial
action | 25 |
| pursuant to the Site Remediation Program of the | 26 |
| Environmental Protection
Act. After the Pollution Control | 27 |
| Board rules are adopted pursuant to the
Illinois | 28 |
| Administrative Procedure Act for the administration and | 29 |
| enforcement of
Section 58.9 of the Environmental | 30 |
| Protection Act, determinations as to credit
availability | 31 |
| for purposes of this Section shall be made consistent with | 32 |
| those
rules. For purposes of this Section, "taxpayer" | 33 |
| includes a person whose tax
attributes the taxpayer has | 34 |
| succeeded to under Section 381 of the Internal
Revenue Code | 35 |
| and "related party" includes the persons disallowed a | 36 |
| deduction
for losses by paragraphs (b), (c), and (f)(1) of |
|
|
|
HB7031 |
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LRB093 16600 SJM 42249 b |
|
| 1 |
| Section 267 of the Internal
Revenue Code by virtue of being | 2 |
| a related taxpayer, as well as any of its
partners. The | 3 |
| credit allowed against the tax imposed by subsections (a) | 4 |
| and
(b) shall be equal to 25% of the unreimbursed eligible | 5 |
| remediation costs in
excess of $100,000 per site, except | 6 |
| that the $100,000 threshold shall not apply
to any site | 7 |
| contained in an enterprise zone as determined by the | 8 |
| Department of
Commerce and Community Affairs (now | 9 |
| Department of Commerce and Economic Opportunity) . The | 10 |
| total credit allowed shall not exceed
$40,000 per year with | 11 |
| a maximum total of $150,000 per site. For partners and
| 12 |
| shareholders of subchapter S corporations, there shall be | 13 |
| allowed a credit
under this subsection to be determined in | 14 |
| accordance with the determination of
income and | 15 |
| distributive share of income under Sections 702 and 704 and
| 16 |
| subchapter S of the Internal Revenue Code.
| 17 |
| (ii) A credit allowed under this subsection that is | 18 |
| unused in the year
the credit is earned may be carried | 19 |
| forward to each of the 5 taxable years
following the year | 20 |
| for which the credit is first earned until it is used.
The | 21 |
| term "unused credit" does not include any amounts of | 22 |
| unreimbursed eligible
remediation costs in excess of the | 23 |
| maximum credit per site authorized under
paragraph (i). | 24 |
| This credit shall be applied first to the earliest year
for | 25 |
| which there is a liability. If there is a credit under this | 26 |
| subsection
from more than one tax year that is available to | 27 |
| offset a liability, the
earliest credit arising under this | 28 |
| subsection shall be applied first. A
credit allowed under | 29 |
| this subsection may be sold to a buyer as part of a sale
of | 30 |
| all or part of the remediation site for which the credit | 31 |
| was granted. The
purchaser of a remediation site and the | 32 |
| tax credit shall succeed to the unused
credit and remaining | 33 |
| carry-forward period of the seller. To perfect the
| 34 |
| transfer, the assignor shall record the transfer in the | 35 |
| chain of title for the
site and provide written notice to | 36 |
| the Director of the Illinois Department of
Revenue of the |
|
|
|
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| 1 |
| assignor's intent to sell the remediation site and the | 2 |
| amount of
the tax credit to be transferred as a portion of | 3 |
| the sale. In no event may a
credit be transferred to any | 4 |
| taxpayer if the taxpayer or a related party would
not be | 5 |
| eligible under the provisions of subsection (i).
| 6 |
| (iii) For purposes of this Section, the term "site" | 7 |
| shall have the same
meaning as under Section 58.2 of the | 8 |
| Environmental Protection Act.
| 9 |
| (m) Education expense credit. Beginning with tax years | 10 |
| ending after
December 31, 1999, a taxpayer who
is the custodian | 11 |
| of one or more qualifying pupils shall be allowed a credit
| 12 |
| against the tax imposed by subsections (a) and (b) of this | 13 |
| Section for
qualified education expenses incurred on behalf of | 14 |
| the qualifying pupils.
The credit shall be equal to 25% of | 15 |
| qualified education expenses, but in no
event may the total | 16 |
| credit under this subsection claimed by a
family that is the
| 17 |
| custodian of qualifying pupils exceed $500. In no event shall a | 18 |
| credit under
this subsection reduce the taxpayer's liability | 19 |
| under this Act to less than
zero. This subsection is exempt | 20 |
| from the provisions of Section 250 of this
Act.
| 21 |
| For purposes of this subsection:
| 22 |
| "Qualifying pupils" means individuals who (i) are | 23 |
| residents of the State of
Illinois, (ii) are under the age of | 24 |
| 21 at the close of the school year for
which a credit is | 25 |
| sought, and (iii) during the school year for which a credit
is | 26 |
| sought were full-time pupils enrolled in a kindergarten through | 27 |
| twelfth
grade education program at any school, as defined in | 28 |
| this subsection.
| 29 |
| "Qualified education expense" means the amount incurred
on | 30 |
| behalf of a qualifying pupil in excess of $250 for tuition, | 31 |
| book fees, and
lab fees at the school in which the pupil is | 32 |
| enrolled during the regular school
year.
| 33 |
| "School" means any public or nonpublic elementary or | 34 |
| secondary school in
Illinois that is in compliance with Title | 35 |
| VI of the Civil Rights Act of 1964
and attendance at which | 36 |
| satisfies the requirements of Section 26-1 of the
School Code, |
|
|
|
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| 1 |
| except that nothing shall be construed to require a child to
| 2 |
| attend any particular public or nonpublic school to qualify for | 3 |
| the credit
under this Section.
| 4 |
| "Custodian" means, with respect to qualifying pupils, an | 5 |
| Illinois resident
who is a parent, the parents, a legal | 6 |
| guardian, or the legal guardians of the
qualifying pupils.
| 7 |
| (Source: P.A. 92-12, eff.
7-1-01; 92-16, eff. 6-28-01; 92-651, | 8 |
| eff. 7-11-02; 92-846, eff. 8-23-02; 93-29,
eff. 6-20-03; | 9 |
| revised 12-6-03.)
| 10 |
| (35 ILCS 5/202.5 new)
| 11 |
| Sec. 202.5. Net income attributable to the period prior to | 12 |
| July 1, 2004
and net
income attributable to the period after | 13 |
| June 30, 2004.
| 14 |
| (a) In general. With respect to the taxable year of a | 15 |
| taxpayer beginning
prior to
July 1, 2004 and ending after June | 16 |
| 30, 2004, net income for the period after
June 30,
2004 shall | 17 |
| be that amount which bears the same ratio to the taxpayer's net
| 18 |
| income for the
entire taxable year as the number of days in | 19 |
| such year after June 30, 2004
bears to the
total number of days | 20 |
| in such year, and the net income for the period prior to
July | 21 |
| 1, 2004
shall be that amount which bears the same ratio to the | 22 |
| taxpayer's net income
for the entire
taxable year as the number | 23 |
| of days in such year prior to July 1, 2004 bears to
the total
| 24 |
| number of days in such year.
| 25 |
| (b) Election to attribute income and deduction items | 26 |
| specifically to the
respective
portions of a taxable year prior | 27 |
| to July 1, 2004 and after June 30, 2004. In
the case of a
| 28 |
| taxpayer with a taxable year beginning prior to July 1, 2004 | 29 |
| and ending after
June 30,
2004, the taxpayer may elect, in lieu | 30 |
| of the procedure established in
subsection (a) of this
Section, | 31 |
| to determine net income on a specific accounting basis for the | 32 |
| 2
portions of his or
her taxable year:
| 33 |
| (i) from the beginning of the taxable year through June | 34 |
| 30, 2004; and
| 35 |
| (ii) from July 1, 2004 through the end of the taxable |
|
|
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| 1 |
| year.
| 2 |
| If the taxpayer elects specific accounting under this | 3 |
| subsection, there shall
be
taken into account in computing base | 4 |
| income for each of the 2 portions of the
taxable
year only | 5 |
| those items earned, received, paid, incurred, or accrued in | 6 |
| each such
period.
The standard exemption provided by Section | 7 |
| 204 shall be divided between the
respective
periods in amounts | 8 |
| that bear the same ratio to the total exemption allowable
under
| 9 |
| Section 204 (determined without regard to this Section) as the | 10 |
| total number of
days in
each such period bears to the total | 11 |
| number of days in the taxable year. The
election
provided by | 12 |
| this subsection shall be made in such manner and at such time | 13 |
| as
the
Department may by forms or regulations prescribe, but | 14 |
| shall be made not later
than the
due date (including any | 15 |
| extensions thereof) for the filing of the return for
the | 16 |
| taxable
year, and shall be irrevocable.
| 17 |
| (35 ILCS 5/804) (from Ch. 120, par. 8-804)
| 18 |
| Sec. 804. Failure to Pay Estimated Tax.
| 19 |
| (a) In general. In case of any underpayment of estimated | 20 |
| tax by a
taxpayer, except as provided in subsection (d) or (e), | 21 |
| the taxpayer shall
be liable to a penalty in an amount | 22 |
| determined at the rate prescribed by
Section 3-3 of the Uniform | 23 |
| Penalty and Interest Act upon the amount of the
underpayment | 24 |
| (determined under subsection (b)) for each required | 25 |
| installment.
| 26 |
| (b) Amount of underpayment. For purposes of subsection (a), | 27 |
| the
amount of the underpayment shall be the excess of:
| 28 |
| (1) the amount of the installment which would be | 29 |
| required to be paid
under subsection (c), over
| 30 |
| (2) the amount, if any, of the installment paid on or | 31 |
| before the
last date prescribed for payment.
| 32 |
| (c) Amount of Required Installments.
| 33 |
| (1) Amount.
| 34 |
| (A) In General. Except as provided in paragraph | 35 |
| (2), the amount of any
required installment shall be |
|
|
|
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| 1 |
| 25% of the required annual payment.
| 2 |
| (B) Required Annual Payment. For purposes of | 3 |
| subparagraph (A),
the term "required annual payment" | 4 |
| means the lesser of
| 5 |
| (i) 90% of the tax shown on the return for the | 6 |
| taxable year, or
if no return is filed, 90% of the | 7 |
| tax for such year, or
| 8 |
| (ii) 100% of the tax shown on the return of the | 9 |
| taxpayer for the
preceding taxable year if a return | 10 |
| showing a liability for tax was filed by
the | 11 |
| taxpayer for the preceding taxable year and such | 12 |
| preceding year was a
taxable year of 12 months.
| 13 |
| (2) Lower Required Installment where Annualized Income | 14 |
| Installment is Less
Than Amount Determined Under Paragraph | 15 |
| (1).
| 16 |
| (A) In General. In the case of any required | 17 |
| installment if a taxpayer
establishes that the | 18 |
| annualized income installment is less than the amount
| 19 |
| determined under paragraph (1),
| 20 |
| (i) the amount of such required installment | 21 |
| shall be the annualized
income installment, and
| 22 |
| (ii) any reduction in a required installment | 23 |
| resulting from the
application of this | 24 |
| subparagraph shall be recaptured by increasing the
| 25 |
| amount of the next required installment determined | 26 |
| under paragraph (1) by
the amount of such | 27 |
| reduction, and by increasing subsequent required
| 28 |
| installments to the extent that the reduction has | 29 |
| not previously been
recaptured under this clause.
| 30 |
| (B) Determination of Annualized Income | 31 |
| Installment. In the case of
any required installment, | 32 |
| the annualized income installment is the
excess, if | 33 |
| any, of
| 34 |
| (i) an amount equal to the applicable | 35 |
| percentage of the tax for the
taxable year computed | 36 |
| by placing on an annualized basis the net income |
|
|
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| for
months in the taxable year ending before the | 2 |
| due date for the installment, over
| 3 |
| (ii) the aggregate amount of any prior | 4 |
| required installments for
the taxable year.
| 5 |
| (C) Applicable Percentage.
|
|
6 | | In the case of the following |
The applicable |
|
7 | | required installments: |
percentage is: |
|
8 | | 1st .............................. |
22.5% |
|
9 | | 2nd ............................... |
45% |
|
10 | | 3rd ............................... |
67.5% |
|
11 | | 4th ............................... |
90% |
|
12 |
| (D) Annualized Net Income; Individuals. For | 13 |
| individuals, net
income shall be placed on an | 14 |
| annualized basis by:
| 15 |
| (i) multiplying by 12, or in the case of a | 16 |
| taxable year of
less than 12 months, by the number | 17 |
| of months in the taxable year, the
net income | 18 |
| computed without regard to the standard exemption | 19 |
| for the months
in the taxable
year ending before | 20 |
| the month in which the installment is required to | 21 |
| be paid;
| 22 |
| (ii) dividing the resulting amount by the | 23 |
| number of months in the
taxable year ending before | 24 |
| the month in which such installment date falls; and
| 25 |
| (iii) deducting from such amount the standard | 26 |
| exemption allowable for
the taxable year, such | 27 |
| standard exemption being determined as of the last
| 28 |
| date prescribed for payment of the installment.
| 29 |
| (E) Annualized Net Income; Corporations. For | 30 |
| corporations,
net income shall be placed on an | 31 |
| annualized basis by multiplying
by 12 the taxable | 32 |
| income
| 33 |
| (i) for the first 3 months of the taxable year, | 34 |
| in the case of the
installment required to be paid | 35 |
| in the 4th month,
| 36 |
| (ii) for the first 3 months or for the first 5 |
|
|
|
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| 1 |
| months of the taxable
year, in the case of the | 2 |
| installment required to be paid in the 6th month,
| 3 |
| (iii) for the first 6 months or for the first 8 | 4 |
| months of the taxable
year, in the case of the | 5 |
| installment required to be paid in the 9th month, | 6 |
| and
| 7 |
| (iv) for the first 9 months or for the first 11 | 8 |
| months of the taxable
year, in the case of the | 9 |
| installment required to be paid in the 12th month
| 10 |
| of the taxable year,
| 11 |
| then dividing the resulting amount by the number of | 12 |
| months in the taxable
year (3, 5, 6, 8, 9, or 11 as the | 13 |
| case may be).
| 14 |
| (d) Exceptions. Notwithstanding the provisions of the | 15 |
| preceding
subsections, the penalty imposed by subsection (a) | 16 |
| shall not
be imposed if the taxpayer was not required to file | 17 |
| an Illinois income
tax return for the preceding taxable year, | 18 |
| or
if the taxpayer has underpaid taxes solely because of the | 19 |
| increased rate in
effect during
the period from July 1, 2004 | 20 |
| through December 31, 2004, or, for individuals, if the
taxpayer | 21 |
| had no tax liability for the preceding taxable year and such | 22 |
| year
was a taxable year of 12 months.
The penalty imposed by | 23 |
| subsection (a) shall
also not be imposed on any underpayments | 24 |
| of estimated tax due before the
effective date of this | 25 |
| amendatory Act of 1998 which underpayments are solely
| 26 |
| attributable to the change in apportionment from subsection (a) | 27 |
| to subsection
(h) of Section 304. The provisions of this | 28 |
| amendatory Act of 1998 apply to tax
years ending on or after | 29 |
| December 31, 1998.
| 30 |
| (e) The penalty imposed for underpayment of estimated tax | 31 |
| by subsection
(a) of this Section shall not be imposed to the | 32 |
| extent that the Department
or his designate determines, | 33 |
| pursuant to Section 3-8 of the Uniform Penalty
and Interest Act | 34 |
| that the penalty should not be imposed.
| 35 |
| (f) Definition of tax. For purposes of subsections (b) and | 36 |
| (c),
the term "tax" means the excess of the tax imposed under |
|
|
|
HB7031 |
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| 1 |
| Article 2 of
this Act, over the amounts credited against such | 2 |
| tax under Sections
601(b) (3) and (4).
| 3 |
| (g) Application of Section in case of tax withheld on | 4 |
| compensation.
For purposes of applying this Section in the case | 5 |
| of an individual, tax
withheld under Article 7 for the taxable | 6 |
| year shall be deemed a payment
of estimated tax, and an equal | 7 |
| part of such amount shall be deemed paid
on each installment | 8 |
| date for such taxable year, unless the taxpayer
establishes the | 9 |
| dates on which all amounts were actually withheld, in
which | 10 |
| case the amounts so withheld shall be deemed payments of | 11 |
| estimated
tax on the dates on which such amounts were actually | 12 |
| withheld.
| 13 |
| (g-5) Amounts withheld under the State Salary and Annuity | 14 |
| Withholding
Act. An individual who has amounts withheld under | 15 |
| paragraph (10) of Section 4
of the State Salary and Annuity | 16 |
| Withholding Act may elect to have those amounts
treated as | 17 |
| payments of estimated tax made on the dates on which those | 18 |
| amounts
are actually withheld.
| 19 |
| (i) Short taxable year. The application of this Section to
| 20 |
| taxable years of less than 12 months shall be in accordance | 21 |
| with
regulations prescribed by the Department.
| 22 |
| The changes in this Section made by Public Act 84-127 shall | 23 |
| apply to
taxable years ending on or after January 1, 1986.
| 24 |
| (Source: P.A. 90-448, eff. 8-16-97; 90-613, eff. 7-9-98 .)
| 25 |
| (35 ILCS 5/901) (from Ch. 120, par. 9-901)
| 26 |
| Sec. 901. Collection Authority.
| 27 |
| (a) In general.
| 28 |
| The Department shall collect the taxes imposed by this Act. | 29 |
| The Department
shall collect certified past due child support | 30 |
| amounts under Section 2505-650
of the Department of Revenue Law | 31 |
| (20 ILCS 2505/2505-650). Except as
provided in subsections (c) | 32 |
| and (e) of this Section, money collected
pursuant to | 33 |
| subsections (a) and (b) of Section 201 of this Act shall be
| 34 |
| paid into the General Revenue Fund in the State treasury; money
| 35 |
| collected pursuant to subsections (c) and (d) of Section 201 of |
|
|
|
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| 1 |
| this Act
shall be paid into the Personal Property Tax | 2 |
| Replacement Fund, a special
fund in the State Treasury; and | 3 |
| money collected under Section 2505-650 of the
Department of | 4 |
| Revenue Law (20 ILCS 2505/2505-650) shall be paid
into the
| 5 |
| Child Support Enforcement Trust Fund, a special fund outside | 6 |
| the State
Treasury, or
to the State
Disbursement Unit | 7 |
| established under Section 10-26 of the Illinois Public Aid
| 8 |
| Code, as directed by the Department of Public
Aid.
| 9 |
| (b) Local Governmental Distributive Fund.
| 10 |
| Beginning August 1, 1969, and continuing through June 30, | 11 |
| 1994, the Treasurer
shall transfer each month from the General | 12 |
| Revenue Fund to a special fund in
the State treasury, to be | 13 |
| known as the "Local Government Distributive Fund", an
amount | 14 |
| equal to 1/12 of the net revenue realized from the tax imposed | 15 |
| by
subsections (a) and (b) of Section 201 of this Act during | 16 |
| the preceding month.
Beginning July 1, 1994, and continuing | 17 |
| through June 30, 1995, the Treasurer
shall transfer each month | 18 |
| from the General Revenue Fund to the Local Government
| 19 |
| Distributive Fund an amount equal to 1/11 of the net revenue | 20 |
| realized from the
tax imposed by subsections (a) and (b) of | 21 |
| Section 201 of this Act during the
preceding month. Beginning | 22 |
| July 1, 1995, the Treasurer shall transfer each
month from the | 23 |
| General Revenue Fund to the Local Government Distributive Fund
| 24 |
| an amount equal to the net of (i) 1/10 of the net revenue | 25 |
| realized from the
tax imposed by
subsections (a) and (b) of | 26 |
| Section 201 of the Illinois Income Tax Act during
the preceding | 27 |
| month
(ii) minus, beginning July 1, 2003 and ending June 30, | 28 |
| 2004, $6,666,666, and
beginning July 1,
2004, zero. Net revenue | 29 |
| realized for a month shall be defined as the
revenue from the | 30 |
| tax imposed by subsections (a) and (b) of Section 201 of this
| 31 |
| Act which is deposited in the General Revenue Fund, the | 32 |
| Educational Assistance
Fund and the Income Tax Surcharge Local | 33 |
| Government Distributive Fund during the
month (but not | 34 |
| including revenue attributable to the increase in tax rates | 35 |
| imposed under this Amendatory Act of the 93rd General Assembly)
| 36 |
| minus the amount paid out of the General Revenue Fund in State |
|
|
|
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| 1 |
| warrants
during that same month as refunds to taxpayers for | 2 |
| overpayment of liability
under the tax imposed by subsections | 3 |
| (a) and (b) of Section 201 of this Act.
| 4 |
| (c) Deposits Into Income Tax Refund Fund.
| 5 |
| (1) Beginning on January 1, 1989 and thereafter, the | 6 |
| Department shall
deposit a percentage of the amounts | 7 |
| collected pursuant to subsections (a)
and (b)(1), (2), and
| 8 |
| (3), (4), and (5) of Section 201 of this Act into a fund in | 9 |
| the State
treasury known as the Income Tax Refund Fund. The | 10 |
| Department shall deposit 6%
of such amounts during the | 11 |
| period beginning January 1, 1989 and ending on June
30, | 12 |
| 1989. Beginning with State fiscal year 1990 and for each | 13 |
| fiscal year
thereafter, the percentage deposited into the | 14 |
| Income Tax Refund Fund during a
fiscal year shall be the | 15 |
| Annual Percentage. For fiscal years 1999 through
2001, the | 16 |
| Annual Percentage shall be 7.1%.
For fiscal year 2003, the | 17 |
| Annual Percentage shall be 8%.
For fiscal year 2004, the | 18 |
| Annual Percentage shall be 11.7%. For all other
fiscal | 19 |
| years, the
Annual Percentage shall be calculated as a | 20 |
| fraction, the numerator of which
shall be the amount of | 21 |
| refunds approved for payment by the Department during
the | 22 |
| preceding fiscal year as a result of overpayment of tax | 23 |
| liability under
subsections (a) and (b)(1), (2), and (3) , | 24 |
| (4), and (5) of Section 201 of this Act plus the
amount of | 25 |
| such refunds remaining approved but unpaid at the end of | 26 |
| the
preceding fiscal year, minus the amounts transferred | 27 |
| into the Income Tax
Refund Fund from the Tobacco Settlement | 28 |
| Recovery Fund, and
the denominator of which shall be the | 29 |
| amounts which will be collected pursuant
to subsections (a) | 30 |
| and (b)(1), (2), and (3) , (4), and (5) of Section 201 of | 31 |
| this Act during
the preceding fiscal year; except that in | 32 |
| State fiscal year 2002, the Annual
Percentage shall in no | 33 |
| event exceed 7.6%. The Director of Revenue shall
certify | 34 |
| the Annual Percentage to the Comptroller on the last | 35 |
| business day of
the fiscal year immediately preceding the | 36 |
| fiscal year for which it is to be
effective.
|
|
|
|
HB7031 |
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| 1 |
| (2) Beginning on January 1, 1989 and thereafter, the | 2 |
| Department shall
deposit a percentage of the amounts | 3 |
| collected pursuant to subsections (a)
and (b)(6), (7), and
| 4 |
| (8), (9), and (10), (c) and (d) of Section 201
of this Act | 5 |
| into a fund in the State treasury known as the Income Tax
| 6 |
| Refund Fund. The Department shall deposit 18% of such | 7 |
| amounts during the
period beginning January 1, 1989 and | 8 |
| ending on June 30, 1989. Beginning
with State fiscal year | 9 |
| 1990 and for each fiscal year thereafter, the
percentage | 10 |
| deposited into the Income Tax Refund Fund during a fiscal | 11 |
| year
shall be the Annual Percentage. For fiscal years 1999, | 12 |
| 2000, and 2001, the
Annual Percentage shall be 19%.
For | 13 |
| fiscal year 2003, the Annual Percentage shall be 27%. For | 14 |
| fiscal year
2004, the Annual Percentage shall be 32%.
For | 15 |
| all other fiscal years, the Annual
Percentage shall be | 16 |
| calculated
as a fraction, the numerator of which shall be | 17 |
| the amount of refunds
approved for payment by the | 18 |
| Department during the preceding fiscal year as
a result of | 19 |
| overpayment of tax liability under subsections (a) and | 20 |
| (b)(6),
(7), and (8), (9), and (10), (c) and (d) of Section | 21 |
| 201 of this Act plus the
amount of such refunds remaining | 22 |
| approved but unpaid at the end of the
preceding fiscal | 23 |
| year, and the denominator of
which shall be the amounts | 24 |
| which will be collected pursuant to subsections (a)
and | 25 |
| (b)(6), (7), and (8), (9), and (10), (c) and (d) of Section | 26 |
| 201 of this Act during the
preceding fiscal year; except | 27 |
| that in State fiscal year 2002, the Annual
Percentage shall | 28 |
| in no event exceed 23%. The Director of Revenue shall
| 29 |
| certify the Annual Percentage to the Comptroller on the | 30 |
| last business day of
the fiscal year immediately preceding | 31 |
| the fiscal year for which it is to be
effective.
| 32 |
| (3) The Comptroller shall order transferred and the | 33 |
| Treasurer shall
transfer from the Tobacco Settlement | 34 |
| Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 | 35 |
| in January, 2001, (ii) $35,000,000 in January, 2002, and
| 36 |
| (iii) $35,000,000 in January, 2003.
|
|
|
|
HB7031 |
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| 1 |
| (d) Expenditures from Income Tax Refund Fund.
| 2 |
| (1) Beginning January 1, 1989, money in the Income Tax | 3 |
| Refund Fund
shall be expended exclusively for the purpose | 4 |
| of paying refunds resulting
from overpayment of tax | 5 |
| liability under Section 201 of this Act, for paying
rebates | 6 |
| under Section 208.1 in the event that the amounts in the | 7 |
| Homeowners'
Tax Relief Fund are insufficient for that | 8 |
| purpose,
and for
making transfers pursuant to this | 9 |
| subsection (d).
| 10 |
| (2) The Director shall order payment of refunds | 11 |
| resulting from
overpayment of tax liability under Section | 12 |
| 201 of this Act from the
Income Tax Refund Fund only to the | 13 |
| extent that amounts collected pursuant
to Section 201 of | 14 |
| this Act and transfers pursuant to this subsection (d)
and | 15 |
| item (3) of subsection (c) have been deposited and retained | 16 |
| in the
Fund.
| 17 |
| (3) As soon as possible after the end of each fiscal | 18 |
| year, the Director
shall
order transferred and the State | 19 |
| Treasurer and State Comptroller shall
transfer from the | 20 |
| Income Tax Refund Fund to the Personal Property Tax
| 21 |
| Replacement Fund an amount, certified by the Director to | 22 |
| the Comptroller,
equal to the excess of the amount | 23 |
| collected pursuant to subsections (c) and
(d) of Section | 24 |
| 201 of this Act deposited into the Income Tax Refund Fund
| 25 |
| during the fiscal year over the amount of refunds resulting | 26 |
| from
overpayment of tax liability under subsections (c) and | 27 |
| (d) of Section 201
of this Act paid from the Income Tax | 28 |
| Refund Fund during the fiscal year.
| 29 |
| (4) As soon as possible after the end of each fiscal | 30 |
| year, the Director shall
order transferred and the State | 31 |
| Treasurer and State Comptroller shall
transfer from the | 32 |
| Personal Property Tax Replacement Fund to the Income Tax
| 33 |
| Refund Fund an amount, certified by the Director to the | 34 |
| Comptroller, equal
to the excess of the amount of refunds | 35 |
| resulting from overpayment of tax
liability under | 36 |
| subsections (c) and (d) of Section 201 of this Act paid
|
|
|
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| from the Income Tax Refund Fund during the fiscal year over | 2 |
| the amount
collected pursuant to subsections (c) and (d) of | 3 |
| Section 201 of this Act
deposited into the Income Tax | 4 |
| 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 shall | 7 |
| 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 |
| (5) This Act shall constitute an irrevocable and | 15 |
| continuing
appropriation from the Income Tax Refund Fund | 16 |
| for the purpose of paying
refunds upon the order of the | 17 |
| Director in accordance with the provisions of
this Section.
| 18 |
| (e) Deposits into the Education Assistance Fund and the | 19 |
| Income Tax
Surcharge Local Government Distributive Fund.
| 20 |
| On July 1, 1991, and thereafter, of the amounts collected | 21 |
| pursuant to
subsections (a) and (b) of Section 201 of this Act, | 22 |
| minus deposits into the
Income Tax Refund Fund, the Department | 23 |
| shall deposit 7.3% into the
Education Assistance Fund in the | 24 |
| State Treasury. Beginning July 1, 1991,
and continuing through | 25 |
| January 31, 1993, of the amounts collected pursuant to
| 26 |
| subsections (a) and (b) of Section 201 of the Illinois Income | 27 |
| Tax Act, minus
deposits into the Income Tax Refund Fund, the | 28 |
| Department shall deposit 3.0%
into the Income Tax Surcharge | 29 |
| Local Government Distributive Fund in the State
Treasury. | 30 |
| Beginning February 1, 1993 and continuing through June 30, | 31 |
| 1993, of
the amounts collected pursuant to subsections (a) and | 32 |
| (b) of Section 201 of the
Illinois Income Tax Act, minus | 33 |
| deposits into the Income Tax Refund Fund, the
Department shall | 34 |
| deposit 4.4% into the Income Tax Surcharge Local Government
| 35 |
| Distributive Fund in the State Treasury. Beginning July 1, | 36 |
| 1993, and
continuing through June 30, 1994, of the amounts |
|
|
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| collected under subsections
(a) and (b) of Section 201 of this | 2 |
| Act, minus deposits into the Income Tax
Refund Fund, the | 3 |
| Department shall deposit 1.475% into the Income Tax Surcharge
| 4 |
| Local Government Distributive Fund in the State Treasury.
| 5 |
| (f) Deposits into the School District Property Tax Relief | 6 |
| Fund and Common
School Fund. Of the amounts collected
pursuant | 7 |
| to
subsections (a), (b)(4)(ii), (b)(5), (b)(9)(ii), and | 8 |
| (b)(10) of Section 201 of
this Act, minus
deposits into the | 9 |
| Income Tax Refund Fund, the Department shall deposit
two-thirds | 10 |
| of the
increase in revenue attributable to the increase in tax | 11 |
| rates imposed under
this
amendatory Act of the 93rd General | 12 |
| Assembly into the School District Property
Tax
Relief Fund and | 13 |
| one-third of the increase in revenue attributable to the
| 14 |
| increase in tax
rates imposed under this amendatory Act of the | 15 |
| 93rd General Assembly into the
Common
School Fund.
| 16 |
| (Source: P.A. 92-11, eff. 6-11-01; 92-16,
eff. 6-28-01; 92-600, | 17 |
| eff. 6-28-02; 93-32, eff. 6-20-03.)
| 18 |
| Section 15-15. The Property Tax Code is amended by changing
| 19 |
| Sections 18-255, 20-15, and 21-30 and by adding Section 18-178 | 20 |
| as follows: | 21 |
| (35 ILCS 200/18-178 new)
| 22 |
| Sec. 18-178. Educational purposes tax abatement. Beginning | 23 |
| with taxes
levied for 2004 (payable in 2005), the county clerk | 24 |
| must determine the final
extension
for educational purposes for | 25 |
| all taxable property in a school district located
in the county
| 26 |
| or for the taxable property of that part of a school district | 27 |
| located in the
county, taking
into account the maximum rate, | 28 |
| levy, and extension authorized
under the
Property Tax
Extension | 29 |
| Limitation Law, the Truth in Taxation Law, and any other | 30 |
| statute. The
county
clerk must then abate the extension for | 31 |
| educational purposes for each school
district or
part of a | 32 |
| school district in the county in the amount of the school | 33 |
| district
property tax
relief grant certified to the county | 34 |
| clerk for that school district or part of
a school district
by |
|
|
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| the Department of Revenue under Section 6z-61 of the State | 2 |
| Finance Act.
When the final
extension for
educational purposes | 3 |
| has been determined and abated, the county clerk must
notify | 4 |
| the Department of Revenue.
| 5 |
| The county clerk must determine the reduced amount of the | 6 |
| tax for
educational
purposes to be billed by the county | 7 |
| collector and paid by each taxpayer in a
given school
district | 8 |
| by re-calculating the tax rate for educational purposes for | 9 |
| that
school district
based on the reduced extension amount | 10 |
| after abatement. This reduced extension
amount shall be
used | 11 |
| only for determining the amount of the tax bill. The extension | 12 |
| amount for
educational
purposes as originally calculated | 13 |
| before abatement is the official final
extension for
| 14 |
| educational purposes and must be used for all other purposes, | 15 |
| including
determining the
maximum rate, levy, and extension | 16 |
| authorized under the Property Tax Extension
Limitation Law, the | 17 |
| Truth in Taxation Law, and any other statute and the
maximum
| 18 |
| amount of tax anticipation warrants under Section 17-16 of the | 19 |
| School Code.
| 20 |
| (35 ILCS 200/18-255)
| 21 |
| Sec. 18-255. Abstract of assessments and extensions. When | 22 |
| the collector's
books are completed, the county clerk shall | 23 |
| make a complete statement of the
assessment and extensions, in | 24 |
| conformity to the instructions of the Department.
The clerk | 25 |
| shall certify the statement to the Department.
Beginning with | 26 |
| the 2004 levy year, the Department shall require the
statement
| 27 |
| to include
a separate listing of the extensions subject to | 28 |
| abatement under Section
18-178.
| 29 |
| (Source: Laws 1943, vol. 1, p. 1136; P.A. 88-455.)
| 30 |
| (35 ILCS 200/20-15)
| 31 |
| Sec. 20-15. Information on bill or separate statement.
The | 32 |
| amount of tax due and rates shown on the tax bill pursuant to | 33 |
| this
Section shall be net
of any abatement under Section | 34 |
| 18-178.
There shall be
printed on each bill, or on a separate |
|
|
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| slip which shall be mailed with the
bill:
| 2 |
| (a) a statement itemizing the rate at which taxes have | 3 |
| been extended for
each of the taxing districts in the | 4 |
| county in whose district the property is
located, and in | 5 |
| those counties utilizing
electronic data processing | 6 |
| equipment the dollar amount of tax due from the
person | 7 |
| assessed allocable to each of those taxing districts, | 8 |
| including a
separate statement of the dollar amount of tax | 9 |
| due which is allocable to a tax
levied under the Illinois | 10 |
| Local Library Act or to any other tax levied by a
| 11 |
| municipality or township for public library purposes,
| 12 |
| (b) a separate statement for each of the taxing | 13 |
| districts of the dollar
amount of tax due which is | 14 |
| allocable to a tax levied under the Illinois Pension
Code | 15 |
| or to any other tax levied by a municipality or township | 16 |
| for public
pension or retirement purposes,
| 17 |
| (c) the total tax rate,
| 18 |
| (d) the total amount of tax due, and
| 19 |
| (e) the amount by which the total tax and the tax | 20 |
| allocable to each taxing
district differs from the | 21 |
| taxpayer's last prior tax bill , and
| 22 |
| (f) the amount of tax abated under Section 18-178 | 23 |
| labeled "Your School
Tax Refund" .
| 24 |
| The county treasurer shall ensure that only those taxing | 25 |
| districts in
which a parcel of property is located shall be | 26 |
| listed on the bill for that
property.
| 27 |
| In all counties the statement shall also provide:
| 28 |
| (1) the property index number or other suitable | 29 |
| description,
| 30 |
| (2) the assessment of the property,
| 31 |
| (3) the equalization factors imposed by the county and | 32 |
| by the Department,
and
| 33 |
| (4) the equalized assessment resulting from the | 34 |
| application of the
equalization factors to the basic | 35 |
| assessment.
| 36 |
| In all counties which do not classify property for purposes |
|
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| 1 |
| of taxation, for
property on which a single family residence is | 2 |
| situated the statement shall
also include a statement to | 3 |
| reflect the fair cash value determined for the
property. In all | 4 |
| counties which classify property for purposes of taxation in
| 5 |
| accordance with Section 4 of Article IX of the Illinois | 6 |
| Constitution, for
parcels of residential property in the lowest | 7 |
| assessment classification the
statement shall also include a | 8 |
| statement to reflect the fair cash value
determined for the | 9 |
| property.
| 10 |
| In all counties, the statement shall include information | 11 |
| that certain
taxpayers may be eligible for the Senior Citizens | 12 |
| and Disabled Persons Property
Tax Relief and Pharmaceutical | 13 |
| Assistance Act and that applications are
available from the | 14 |
| Illinois Department of Revenue.
| 15 |
| In counties which use the estimated or accelerated billing | 16 |
| methods, these
statements shall only be provided with the final | 17 |
| installment of taxes due ,
except that the statement under item | 18 |
| (f) shall be included with both
installments in those
counties | 19 |
| under estimated or accelerated billing methods, the first | 20 |
| billing
showing the
amount deducted from the first installment, | 21 |
| and the final billing showing the
total tax
abated for the levy | 22 |
| year under Section 18-178 . The
provisions of this Section | 23 |
| create a mandatory statutory duty. They are not
merely | 24 |
| directory or discretionary. The failure or neglect of the | 25 |
| collector to
mail the bill, or the failure of the taxpayer to | 26 |
| receive the bill, shall not
affect the validity of any tax, or | 27 |
| the liability for the payment of any tax.
| 28 |
| (Source: P.A. 91-699, eff. 1-1-01.)
| 29 |
| (35 ILCS 200/21-30)
| 30 |
| Sec. 21-30. Accelerated billing. Except as provided in this | 31 |
| Section, Section 9-260, and Section 21-40, in
counties with
| 32 |
| 3,000,000 or more inhabitants, by January 31 annually, | 33 |
| estimated tax bills
setting out the first installment of | 34 |
| property taxes for the preceding year,
payable in that year, | 35 |
| shall be prepared and mailed. The first installment of
taxes on |
|
|
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| the estimated tax bills shall be computed at 50% of the total | 2 |
| of each
tax bill before the abatement of taxes under Section | 3 |
| 18-178 for the preceding year , less an estimate of one half of | 4 |
| the school district property
tax relief
grant for the current
| 5 |
| year determined based on information provided by the Department | 6 |
| of Revenue and
any
other information available .
If, prior to | 7 |
| the preparation of the estimated tax bills, a certificate of
| 8 |
| error has been either approved by a court on or before November | 9 |
| 30 of the
preceding year or certified pursuant to Section 14-15 | 10 |
| on or before November 30
of the preceding year, then the first | 11 |
| installment of taxes on the estimated tax
bills shall be | 12 |
| computed at 50% of the total taxes before the abatement of | 13 |
| taxes under Section 18-178 for the preceding year as
corrected | 14 |
| by the certificate of error , less an estimate of one half of | 15 |
| the
school district property tax relief
grant for the current
| 16 |
| year determined based on information provided by the Department | 17 |
| of Revenue and
any
other information available .
By June 30 | 18 |
| annually, actual tax bills shall
be prepared and mailed. These | 19 |
| bills shall set out total taxes due and the
amount of estimated | 20 |
| taxes billed in the first installment, and shall state
the | 21 |
| balance of taxes due for that year as represented by the sum | 22 |
| derived
from subtracting the amount of the first installment | 23 |
| from the total taxes due
for that year.
| 24 |
| The county board may provide by ordinance, in counties with | 25 |
| 3,000,000 or more
inhabitants, for taxes to be paid in 4 | 26 |
| installments. For the levy year for
which the ordinance is | 27 |
| first effective and each subsequent year, estimated tax
bills | 28 |
| setting out the first, second, and third installment of taxes | 29 |
| for the
preceding year, payable in that year, shall be prepared | 30 |
| and mailed not later
than the date specified by ordinance. Each | 31 |
| installment on estimated tax bills
shall be computed at 25% of | 32 |
| the total of each tax bill for the preceding year.
By the date | 33 |
| specified in the ordinance, actual tax bills shall be prepared | 34 |
| and
mailed. These bills shall set out total taxes due and the | 35 |
| amount of estimated
taxes billed in the first, second, and | 36 |
| third installments and shall state the
balance of taxes due for |
|
|
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| 1 |
| that year as represented by the sum derived from
subtracting | 2 |
| the amount of the estimated installments from the total taxes | 3 |
| due
for that year.
| 4 |
| The county board of any county with less than 3,000,000 | 5 |
| inhabitants may, by
ordinance or resolution, adopt an | 6 |
| accelerated method of tax billing.
The county board may | 7 |
| subsequently rescind the ordinance or resolution and
revert to | 8 |
| the method otherwise provided for in this Code.
| 9 |
| Taxes levied on homestead property in which a member of the | 10 |
| National Guard or
reserves of the armed forces of the United | 11 |
| States who was called to active duty
on or after August 1, | 12 |
| 1990, and who has an ownership interest shall not be
deemed | 13 |
| delinquent and no interest shall accrue or be charged as a | 14 |
| penalty on
such taxes due and payable in 1991 or 1992 until one | 15 |
| year after that member
returns to civilian status.
| 16 |
| (Source: P.A. 92-475, eff. 8-23-01; 93-560, eff. 8-20-03.)
| 17 |
| ARTICLE 99
| 18 |
| | 19 |
| Section 99-99. Effective date. This Act takes effect July | 20 |
| 1, 2004. |
|