HC0027 96TH GENERAL ASSEMBLY

LRB096 10336 RCE 20506 e

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HOUSE JOINT RESOLUTION
CONSTITUTIONAL AMENDMENT
HC0027

Introduced 2/27/2009, by Rep. Michael K. Smith

SYNOPSIS AS INTRODUCED:

ILCON Art. IX, Sec. 3

Proposes to amend the Revenue Article of the Illinois Constitution with respect to limitations on income taxation. Provides that the rates shall be non-graduated, by category. The categories are (i) individuals (under $250,000), (ii) individuals ($250,000 or more), and (iii) corporations. Combines an individual's income with that of his or her spouse. Provides that in any such tax imposed upon individuals ($250,00 or more), the rate shall be the rate imposed upon individuals (under $250,000) for net income under $250,000 and the higher of (i) 6% or (ii) twice the rate imposed upon individuals (under $250,000) for net income of $250,000 or more. Provides that the rate on corporations shall not exceed the rate imposed on individuals (under $250,000) by more than a ratio of 8 to 5. Provides that the basic amount of each standard exemption for individuals (under $250,000) shall be $4,500 or such greater amount as provided by law. Provides that the amounts of $250,000 and $4,500 shall be adjusted each year to reflect changes in a specified consumer price index. Provides for all tax collections to be deposited as provided by law for the deposit of income tax collections, except that one-third of all amounts collected from individuals ($250,000 or more) that is attributable to that part of the rate in excess of the rate imposed on individuals (under $250,000) shall be deposited into each of the following funds: the Revitalize Illinois Schools Fund, the Rebuild Illinois Infrastructure Fund, and the Reward Illinois Working Families Fund; and expenditures from the Schools and Infrastructure funds shall be made only for those respective purposes and only as specifically appropriated by law. Provides that amounts in the Reward Illinois Working Families Fund shall be transferred and deposited as provided by law for the deposit of income tax collections. Makes the provisions self-executing and judicially enforceable. Provides for definition of terms. Effective upon being declared adopted and applies to taxable years 2010 and thereafter.

A BILL FOR

HOUSE JOINT RESOLUTION

CONSTITUTIONAL AMENDMENT

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SIXTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE SENATE CONCURRING HEREIN, that there shall be submitted to the electors of the State for adoption or rejection at the general election next occurring at least 6 months after the adoption of this resolution a proposition to amend Section 3 of Article IX of the Illinois Constitution as follows:

ARTICLE IX

REVENUE

(ILCON Art. IX, Sec. 3)

SECTION 3. LIMITATIONS ON INCOME TAXATION

(a) A tax on or measured by income shall be at a non-graduated rates, by category, as determined under this Section rate. At any one time there may be no more than one such tax imposed by the State for State purposes on individuals and one such tax so imposed on corporations.

(b) The categories under this Section are (i) "individuals (under $250,000)" for individuals whose annual net income, combined with the annual net income of the spouse, is under $250,000, (ii) "individuals ($250,000 or more)" for individuals whose annual net income, combined with the annual net income of the spouse, is $250,000 or more, and (iii) corporations. In any such tax imposed upon individuals ($250,000 or more), the rate shall be the rate imposed upon individuals (under $250,000) for net income under $250,000 and the higher of (i) 6% or (ii) twice the rate imposed upon individuals (under $250,000) for net income of $250,000 or more. In any such tax imposed upon corporations, the rate shall not exceed the rate imposed on individuals (under $250,000) by more than a ratio of 8 to 5. The basic amount of each standard exemption for individuals (under $250,000) shall be $4,500 or such greater amount as provided by law. The amounts of $250,000 and $4,500 shall be adjusted each year to reflect changes in the annual Consumer Price Index For All Urban Consumers as determined by the United States Department of Labor or, should that Index no longer be published, by a similar index determined by law.

(c) Income taxes collected from individuals (under $250,000) and from corporations shall be deposited as provided by law for the deposit of income tax collections. That portion of income taxes collected from individuals ($250,000 or more) that is attributable to a rate equal to the rate for individuals (under $250,000) shall be deposited as provided by law for the deposit of income tax collections. Of all other amounts collected from individuals ($250,000 or more), one-third of such amounts shall be deposited into each of the following funds, which are hereby created in the State treasury: the Revitalize Illinois Schools Fund, the Rebuild Illinois Infrastructure Fund, and the Reward Illinois Working Families Fund. Expenditures from the Revitalize Illinois Schools Fund and the Rebuild Illinois Infrastructure Fund shall be made only for educational and capital purposes, respectively, and only as specifically appropriated by law. All amounts held in the Reward Illinois Working Families Fund shall be transferred and deposited as provided by law for the deposit of income tax collections.

(d) (b) Laws imposing taxes on or measured by income may adopt by reference provisions of the laws and regulations of the United States, as they then exist or thereafter may be changed, for the purpose of arriving at the amount of income upon which the tax is imposed.

(e) The terms used in this Section have the meanings of those terms as provided by law under relevant statutes.

(f) The provisions of this Section are self-executing and judicially enforceable. The Supreme Court shall have original and exclusive jurisdiction over actions under this Section.

(Source: Illinois Constitution.)

SCHEDULE

The State Board of Elections shall proceed, as soon as all the returns are received but no later than 31 days after the election, to canvass the votes given for and against this Constitutional Amendment, as shown by the abstracts of votes cast. If this Constitutional Amendment is approved by either three-fifths of those voting on the question or a majority of those voting in the election, then the State Board of Elections shall declare the adoption of this Constitutional Amendment and it shall, upon declaration of its adoption, take effect and become a part of the Constitution of this State. This Schedule supersedes and applies notwithstanding any statute to the contrary, and no other requirements, including without limitation proclamation of the results of the vote or notice by publication, are necessary for its effectiveness. This Constitutional Amendment applies to taxable years 2010 and thereafter.