Public Act 098-1052
 
HB0961 EnrolledLRB098 06118 HLH 36159 b



    AN ACT concerning revenue.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:



 
    Section 5. The State Revenue Sharing Act is amended  by 
changing Section 1 as follows:
 



    (30 ILCS 115/1)  (from Ch. 85, par. 611)



    Sec. 1. Local Government Distributive Fund. Through June 
30, 1994, as
soon as may be after the first day of each month 
the Department of Revenue
shall certify to the Treasurer an 
amount equal to 1/12 of the net revenue
realized from the tax 
imposed by subsections (a) and (b) of Section 201 of the

Illinois Income Tax Act during the preceding month.  Beginning 
July 1, 1994,
and continuing through June 30, 1995, as soon as 
may be after the first day of
each month, the Department of 
Revenue shall certify to the Treasurer an amount
equal to 1/11 
of the net revenue realized from the tax imposed by subsections

(a) and (b) of Section 201 of the Illinois Income Tax Act 
during the preceding
month. Beginning July 1, 1995, as soon as 
may be after the first day of each
month, the Department of 
Revenue shall certify to the Treasurer an amount equal
to the 
amounts calculated pursuant to subsection (b) of Section 901 of 
the Illinois Income Tax Act based on 1/10 of the net revenue 
realized from the tax imposed by subsections (a) and
(b) of 
Section 201 of the Illinois Income Tax Act during the preceding 
month.
Net revenue realized for a month shall be defined as the 
revenue from the tax
imposed by subsections (a) and (b) of 
Section 201 of the Illinois Income Tax
Act which is deposited 
in the General Revenue Fund, the Education Assistance
Fund and 
the Income Tax Surcharge Local Government Distributive Fund 
during the
month minus the amount paid out of the General 
Revenue Fund in State warrants
during that same month as 
refunds to taxpayers for overpayment of liability
under the tax 
imposed by subsections (a) and (b) of Section 201 of the 
Illinois
Income Tax Act.  Upon receipt of such certification, 
the Treasurer shall
transfer from the General Revenue Fund to a 
special fund in the State treasury,
to be known as the "Local 
Government Distributive Fund", the amount shown on
such 
certification.

    Beginning on the effective date of this amendatory Act of 
the 98th General Assembly, the Comptroller shall perform the 
transfers required by this Section no later than 60 days after 
he or she receives the certification from the Treasurer. 
    All amounts paid into the Local Government Distributive 
Fund in accordance
with this Section and allocated pursuant to 
this Act are appropriated on a
continuing basis.

(Source: P.A. 88-89.)

 
    Section 10. The Illinois Income Tax Act is amended  by 
changing Section 901 as follows:
 
    (35 ILCS 5/901)  (from Ch. 120, par. 9-901)
    Sec. 901. Collection Authority. 
    (a) In general.
    The Department shall collect the taxes imposed by this Act.  
The Department
shall collect certified past due child support 
amounts under Section 2505-650
of the Department of Revenue Law 
(20 ILCS 2505/2505-650).  Except as
provided in subsections (c), 
(e), (f), and (g) of this Section, money collected
pursuant to 
subsections (a) and (b) of Section 201 of this Act shall be

paid into the General Revenue Fund in the State treasury; money

collected pursuant to subsections (c) and (d) of Section 201 of 
this Act
shall be paid into the Personal Property Tax 
Replacement Fund, a special
fund in the State Treasury; and 
money collected under Section 2505-650 of the
Department of 
Revenue Law (20 ILCS 2505/2505-650) shall be paid
into the

Child Support Enforcement Trust Fund, a special fund outside 
the State
Treasury, or
to the State
Disbursement Unit 
established under Section 10-26 of the Illinois Public Aid

Code, as directed by the Department of Healthcare and Family 
Services.
    (b) Local Government Distributive Fund.
    Beginning August 1, 1969, and continuing through June 30, 
1994, the Treasurer
shall transfer each month from the General 
Revenue Fund to a special fund in
the State treasury, to be 
known as the "Local Government Distributive Fund", an
amount 
equal to 1/12 of the net revenue realized from the tax imposed 
by
subsections (a) and (b) of Section 201 of this Act during 
the preceding month.
Beginning July 1, 1994, and continuing 
through June 30, 1995, the Treasurer
shall transfer each month 
from the General Revenue Fund to the Local Government

Distributive Fund an amount equal to 1/11 of the net revenue 
realized from the
tax imposed by subsections (a) and (b) of 
Section 201 of this Act during the
preceding month.  Beginning 
July 1, 1995 and continuing through January 31, 2011, the 
Treasurer shall transfer each
month from the General Revenue 
Fund to the Local Government Distributive Fund
an amount equal 
to the net of (i) 1/10 of the net revenue realized from the
tax 
imposed by
subsections (a) and (b) of Section 201 of the 
Illinois Income Tax Act during
the preceding month
(ii) minus, 
beginning July 1, 2003 and ending June 30, 2004, $6,666,666, 
and
beginning July 1,
2004,
zero. Beginning February 1, 2011, 
and continuing through January 31, 2015, the Treasurer shall 
transfer each month from the General Revenue Fund to the Local 
Government Distributive Fund an amount equal to the sum of (i) 
6% (10% of the ratio of the 3% individual income tax rate prior 
to 2011 to the 5% individual income tax rate after 2010) of the 
net revenue realized from the tax imposed by subsections (a) 
and (b) of Section 201 of this Act upon individuals, trusts, 
and estates during the preceding month and (ii) 6.86% (10% of 
the ratio of the 4.8% corporate income tax rate prior to 2011 
to the 7% corporate income tax rate after 2010) of the net 
revenue realized from the tax imposed by subsections (a) and 
(b) of Section 201 of this Act upon corporations during the 
preceding month.  Beginning February 1, 2015 and continuing 
through January 31, 2025, the Treasurer shall transfer each 
month from the General Revenue Fund to the Local Government 
Distributive Fund an amount equal to the sum of (i) 8% (10% of 
the ratio of the 3% individual income tax rate prior to 2011 to 
the 3.75% individual income tax rate after 2014) of the net 
revenue realized from the tax imposed by subsections (a) and 
(b) of Section 201 of this Act upon individuals, trusts, and 
estates during the preceding month and (ii) 9.14% (10% of the 
ratio of the 4.8% corporate income tax rate prior to 2011 to 
the 5.25% corporate income tax rate after 2014) of the net 
revenue realized from the tax imposed by subsections (a) and 
(b) of Section 201 of this Act upon corporations during the 
preceding month. Beginning February 1, 2025, the Treasurer 
shall transfer each month from the General Revenue Fund to the 
Local Government Distributive Fund an amount equal to the sum 
of (i) 9.23% (10% of the ratio of the 3% individual income tax 
rate prior to 2011 to the 3.25% individual income tax rate 
after 2024) of the net revenue realized from the tax imposed by 
subsections (a) and (b) of Section 201 of this Act upon 
individuals, trusts, and estates during the preceding month and 
(ii) 10% of the net revenue realized from the tax imposed by 
subsections (a) and (b) of Section 201 of this Act upon 
corporations during the preceding month. Net revenue realized 
for a month shall be defined as the
revenue from the tax 
imposed by subsections (a) and (b) of Section 201 of this
Act 
which is deposited in the General Revenue Fund, the Education 
Assistance
Fund, the Income Tax Surcharge Local Government 
Distributive Fund, the Fund for the Advancement of Education, 
and the Commitment to Human Services Fund during the
month 
minus the amount paid out of the General Revenue Fund in State 
warrants
during that same month as refunds to taxpayers for 
overpayment of liability
under the tax imposed by subsections 
(a) and (b) of Section 201 of this Act.
    Beginning on the effective date of this amendatory Act of 
the 98th General Assembly, the Comptroller shall perform the 
transfers required by this subsection (b) no later than 60 days 
after he or she receives the certification from the Treasurer 
as provided in Section 1 of the State Revenue Sharing Act. 
    (c) Deposits Into Income Tax Refund Fund.
        (1) Beginning on January 1, 1989 and thereafter, the 
    Department shall
deposit a percentage of the amounts 
    collected pursuant to subsections (a)
and (b)(1), (2), and 
    (3), of Section 201 of this Act into a fund in the State

    treasury known as the Income Tax Refund Fund.  The 
    Department shall deposit 6%
of such amounts during the 
    period beginning January 1, 1989 and ending on June
30, 
    1989.  Beginning with State fiscal year 1990 and for each 
    fiscal year
thereafter, the percentage deposited into the 
    Income Tax Refund Fund during a
fiscal year shall be the 
    Annual Percentage.  For fiscal years 1999 through
2001, the 
    Annual Percentage shall be 7.1%.
For fiscal year 2003, the 
    Annual Percentage shall be 8%.
For fiscal year 2004, the 
    Annual Percentage shall be 11.7%.  Upon the effective date 
    of this amendatory Act of the 93rd General Assembly, the 
    Annual Percentage shall be 10% for fiscal year 2005. For 
    fiscal year 2006, the Annual Percentage shall be 9.75%. For 
    fiscal
year 2007, the Annual Percentage shall be 9.75%. For 
    fiscal year 2008, the Annual Percentage shall be 7.75%. For 
    fiscal year 2009, the Annual Percentage shall be 9.75%. For 
    fiscal year 2010, the Annual Percentage shall be 9.75%. For 
    fiscal year 2011, the Annual Percentage shall be 8.75%. For 
    fiscal year 2012, the Annual Percentage shall be 8.75%. For 
    fiscal year 2013, the Annual Percentage shall be 9.75%. For 
    fiscal year 2014, the Annual Percentage shall be 9.5%. For 
    all other
fiscal years, the
Annual Percentage shall be 
    calculated as a fraction, the numerator of which
shall be 
    the amount of refunds approved for payment by the 
    Department during
the preceding fiscal year as a result of 
    overpayment of tax liability under
subsections (a) and 
    (b)(1), (2), and (3) of Section 201 of this Act plus the

    amount of such refunds remaining approved but unpaid at the 
    end of the
preceding fiscal year, minus the amounts 
    transferred into the Income Tax
Refund Fund from the 
    Tobacco Settlement Recovery Fund, and
the denominator of 
    which shall be the amounts which will be collected pursuant

    to subsections (a) and (b)(1), (2), and (3) of Section 201 
    of this Act during
the preceding fiscal year; except that 
    in State fiscal year 2002, the Annual
Percentage shall in 
    no event exceed 7.6%.  The Director of Revenue shall
certify 
    the Annual Percentage to the Comptroller on the last 
    business day of
the fiscal year immediately preceding the 
    fiscal year for which it is to be
effective.
        (2) Beginning on January 1, 1989 and thereafter, the 
    Department shall
deposit a percentage of the amounts 
    collected pursuant to subsections (a)
and (b)(6), (7), and 
    (8), (c) and (d) of Section 201
of this Act into a fund in 
    the State treasury known as the Income Tax
Refund Fund.  The 
    Department shall deposit 18% of such amounts during the

    period beginning January 1, 1989 and ending on June 30, 
    1989.  Beginning
with State fiscal year 1990 and for each 
    fiscal year thereafter, the
percentage deposited into the 
    Income Tax Refund Fund during a fiscal year
shall be the 
    Annual Percentage.  For fiscal years 1999, 2000, and 2001, 
    the
Annual Percentage shall be 19%.
For fiscal year 2003, 
    the Annual Percentage shall be 27%.  For fiscal year
2004, 
    the Annual Percentage shall be 32%.
Upon the effective date 
    of this amendatory Act of the 93rd General Assembly, the 
    Annual Percentage shall be 24% for fiscal year 2005.
For 
    fiscal year 2006, the Annual Percentage shall be 20%. For 
    fiscal
year 2007, the Annual Percentage shall be 17.5%. For 
    fiscal year 2008, the Annual Percentage shall be 15.5%. For 
    fiscal year 2009, the Annual Percentage shall be 17.5%. For 
    fiscal year 2010, the Annual Percentage shall be 17.5%. For 
    fiscal year 2011, the Annual Percentage shall be 17.5%. For 
    fiscal year 2012, the Annual Percentage shall be 17.5%. For 
    fiscal year 2013, the Annual Percentage shall be 14%. For 
    fiscal year 2014, the Annual Percentage shall be 13.4%. For 
    all other fiscal years, the Annual
Percentage shall be 
    calculated
as a fraction, the numerator of which shall be 
    the amount of refunds
approved for payment by the 
    Department during the preceding fiscal year as
a result of 
    overpayment of tax liability under subsections (a) and 
    (b)(6),
(7), and (8), (c) and (d) of Section 201 of this 
    Act plus the
amount of such refunds remaining approved but 
    unpaid at the end of the
preceding fiscal year, and the 
    denominator of
which shall be the amounts which will be 
    collected pursuant to subsections (a)
and (b)(6), (7), and 
    (8), (c) and (d) of Section 201 of this Act during the

    preceding fiscal year; except that in State fiscal year 
    2002, the Annual
Percentage shall in no event exceed 23%.  
    The Director of Revenue shall
certify the Annual Percentage 
    to the Comptroller on the last business day of
the fiscal 
    year immediately preceding the fiscal year for which it is 
    to be
effective.
        (3) The Comptroller shall order transferred and the 
    Treasurer shall
transfer from the Tobacco Settlement 
    Recovery Fund to the Income Tax Refund
Fund (i) $35,000,000 
    in January, 2001, (ii) $35,000,000 in January, 2002, and

    (iii) $35,000,000 in January, 2003.
    (d) Expenditures from Income Tax Refund Fund.
        (1) Beginning January 1, 1989, money in the Income Tax 
    Refund Fund
shall be expended exclusively for the purpose 
    of paying refunds resulting
from overpayment of tax 
    liability under Section 201 of this Act, for paying
rebates 
    under Section 208.1 in the event that the amounts in the 
    Homeowners'
Tax Relief Fund are insufficient for that 
    purpose,
and for
making transfers pursuant to this 
    subsection (d).
        (2) The Director shall order payment of refunds 
    resulting from
overpayment of tax liability under Section 
    201 of this Act from the
Income Tax Refund Fund only to the 
    extent that amounts collected pursuant
to Section 201 of 
    this Act and transfers pursuant to this subsection (d)
and 
    item (3) of subsection (c) have been deposited and retained 
    in the
Fund.
        (3) As soon as possible after the end of each fiscal 
    year, the Director
shall
order transferred and the State 
    Treasurer and State Comptroller shall
transfer from the 
    Income Tax Refund Fund to the Personal Property Tax

    Replacement Fund an amount, certified by the Director to 
    the Comptroller,
equal to the excess of the amount 
    collected pursuant to subsections (c) and
(d) of Section 
    201 of this Act deposited into the Income Tax Refund Fund

    during the fiscal year over the amount of refunds resulting 
    from
overpayment of tax liability under subsections (c) and 
    (d) of Section 201
of this Act paid from the Income Tax 
    Refund Fund during the fiscal year.
        (4) As soon as possible after the end of each fiscal 
    year, the Director shall
order transferred and the State 
    Treasurer and State Comptroller shall
transfer from the 
    Personal Property Tax Replacement Fund to the Income Tax

    Refund Fund an amount, certified by the Director to the 
    Comptroller, equal
to the excess of the amount of refunds 
    resulting from overpayment of tax
liability under 
    subsections (c) and (d) of Section 201 of this Act paid

    from the Income Tax Refund Fund during the fiscal year over 
    the amount
collected pursuant to subsections (c) and (d) of 
    Section 201 of this Act
deposited into the Income Tax 
    Refund Fund during the fiscal year.
        (4.5) As soon as possible after the end of fiscal year 
    1999 and of each
fiscal year
thereafter, the Director shall 
    order transferred and the State Treasurer and
State 
    Comptroller shall transfer from the Income Tax Refund Fund 
    to the General
Revenue Fund any surplus remaining in the 
    Income Tax Refund Fund as of the end
of such fiscal year; 
    excluding for fiscal years 2000, 2001, and 2002
amounts 
    attributable to transfers under item (3) of subsection (c) 
    less refunds
resulting from the earned income tax credit.
        (5) This Act shall constitute an irrevocable and 
    continuing
appropriation from the Income Tax Refund Fund 
    for the purpose of paying
refunds upon the order of the 
    Director in accordance with the provisions of
this Section.
    (e) Deposits into the Education Assistance Fund and the 
Income Tax
Surcharge Local Government Distributive Fund.
    On July 1, 1991, and thereafter, of the amounts collected 
pursuant to
subsections (a) and (b) of Section 201 of this Act, 
minus deposits into the
Income Tax Refund Fund, the Department 
shall deposit 7.3% into the
Education Assistance Fund in the 
State Treasury.  Beginning July 1, 1991,
and continuing through 
January 31, 1993, of the amounts collected pursuant to

subsections (a) and (b) of Section 201 of the Illinois Income 
Tax Act, minus
deposits into the Income Tax Refund Fund, the 
Department shall deposit 3.0%
into the Income Tax Surcharge 
Local Government Distributive Fund in the State
Treasury.  
Beginning February 1, 1993 and continuing through June 30, 
1993, of
the amounts collected pursuant to subsections (a) and 
(b) of Section 201 of the
Illinois Income Tax Act, minus 
deposits into the Income Tax Refund Fund, the
Department shall 
deposit 4.4% into the Income Tax Surcharge Local Government

Distributive Fund in the State Treasury.  Beginning July 1, 
1993, and
continuing through June 30, 1994, of the amounts 
collected under subsections
(a) and (b) of Section 201 of this 
Act, minus deposits into the Income Tax
Refund Fund, the 
Department shall deposit 1.475% into the Income Tax Surcharge

Local Government Distributive Fund in the State Treasury.
    (f) Deposits into the Fund for the Advancement of 
Education. Beginning February 1, 2015, the Department shall 
deposit the following portions of the revenue realized from the 
tax imposed upon individuals, trusts, and estates by 
subsections (a) and (b) of Section 201 of this Act during the 
preceding month, minus deposits into the Income Tax Refund 
Fund, into the Fund for the Advancement of Education: 
        (1) beginning February 1, 2015, and prior to February 
    1, 2025, 1/30; and 
        (2) beginning February 1, 2025, 1/26. 
    If the rate of tax imposed by subsection (a) and (b) of 
Section 201 is reduced pursuant to Section 201.5 of this Act, 
the Department shall not make the deposits required by this 
subsection (f) on or after the effective date of the reduction. 
    (g) Deposits into the Commitment to Human Services Fund. 
Beginning February 1, 2015, the Department shall deposit the 
following portions of the revenue realized from the tax imposed 
upon individuals, trusts, and estates by subsections (a) and 
(b) of Section 201 of this Act during the preceding month, 
minus deposits into the Income Tax Refund Fund, into the 
Commitment to Human Services Fund: 
        (1) beginning February 1, 2015, and prior to February 
    1, 2025, 1/30; and 
        (2) beginning February 1, 2025, 1/26. 
    If the rate of tax imposed by subsection (a) and (b) of 
Section 201 is reduced pursuant to Section 201.5 of this Act, 
the Department shall not make the deposits required by this 
subsection (g) on or after the effective date of the reduction. 
(Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24, 
eff. 6-19-13.)
 

    Section 99. Effective date. This Act takes effect upon 
becoming law.