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Illinois House Bill HB2686

Illinois 2025-2026 Regular Session

Illinois House Bill HB2686 Compare Versions

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11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2686 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED: 30 ILCS 105/6z-17 from Ch. 127, par. 142z-1730 ILCS 115/1 from Ch. 85, par. 61130 ILCS 115/2 from Ch. 85, par. 612 Amends the State Finance Act and the State Revenue Sharing Act. Provides that certain provisions concerning distributions from the State and Local Sales Tax Reform Fund and from the Local Government Distributive Fund constitute an irrevocable and continuing appropriation. Effective immediately. LRB104 03444 HLH 13467 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2686 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED: 30 ILCS 105/6z-17 from Ch. 127, par. 142z-1730 ILCS 115/1 from Ch. 85, par. 61130 ILCS 115/2 from Ch. 85, par. 612 30 ILCS 105/6z-17 from Ch. 127, par. 142z-17 30 ILCS 115/1 from Ch. 85, par. 611 30 ILCS 115/2 from Ch. 85, par. 612 Amends the State Finance Act and the State Revenue Sharing Act. Provides that certain provisions concerning distributions from the State and Local Sales Tax Reform Fund and from the Local Government Distributive Fund constitute an irrevocable and continuing appropriation. Effective immediately. LRB104 03444 HLH 13467 b LRB104 03444 HLH 13467 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2686 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED:
33 30 ILCS 105/6z-17 from Ch. 127, par. 142z-1730 ILCS 115/1 from Ch. 85, par. 61130 ILCS 115/2 from Ch. 85, par. 612 30 ILCS 105/6z-17 from Ch. 127, par. 142z-17 30 ILCS 115/1 from Ch. 85, par. 611 30 ILCS 115/2 from Ch. 85, par. 612
44 30 ILCS 105/6z-17 from Ch. 127, par. 142z-17
55 30 ILCS 115/1 from Ch. 85, par. 611
66 30 ILCS 115/2 from Ch. 85, par. 612
77 Amends the State Finance Act and the State Revenue Sharing Act. Provides that certain provisions concerning distributions from the State and Local Sales Tax Reform Fund and from the Local Government Distributive Fund constitute an irrevocable and continuing appropriation. Effective immediately.
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1313 1 AN ACT concerning revenue.
1414 2 Be it enacted by the People of the State of Illinois,
1515 3 represented in the General Assembly:
1616 4 Section 5. The State Finance Act is amended by changing
1717 5 Section 6z-17 as follows:
1818 6 (30 ILCS 105/6z-17) (from Ch. 127, par. 142z-17)
1919 7 Sec. 6z-17. State and Local Sales Tax Reform Fund.
2020 8 (a) After deducting the amount transferred to the Tax
2121 9 Compliance and Administration Fund under subsection (b), of
2222 10 the money paid into the State and Local Sales Tax Reform Fund:
2323 11 (i) subject to appropriation to the Department of Revenue,
2424 12 Municipalities having 1,000,000 or more inhabitants shall
2525 13 receive 20% and may expend such amount to fund and establish a
2626 14 program for developing and coordinating public and private
2727 15 resources targeted to meet the affordable housing needs of
2828 16 low-income and very low-income households within such
2929 17 municipality, (ii) 10% shall be transferred into the Regional
3030 18 Transportation Authority Occupation and Use Tax Replacement
3131 19 Fund, a special fund in the State treasury which is hereby
3232 20 created, (iii) until July 1, 2013, subject to appropriation to
3333 21 the Department of Transportation, the Madison County Mass
3434 22 Transit District shall receive .6%, and beginning on July 1,
3535 23 2013, subject to appropriation to the Department of Revenue,
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3939 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2686 Introduced , by Rep. William "Will" Davis SYNOPSIS AS INTRODUCED:
4040 30 ILCS 105/6z-17 from Ch. 127, par. 142z-1730 ILCS 115/1 from Ch. 85, par. 61130 ILCS 115/2 from Ch. 85, par. 612 30 ILCS 105/6z-17 from Ch. 127, par. 142z-17 30 ILCS 115/1 from Ch. 85, par. 611 30 ILCS 115/2 from Ch. 85, par. 612
4141 30 ILCS 105/6z-17 from Ch. 127, par. 142z-17
4242 30 ILCS 115/1 from Ch. 85, par. 611
4343 30 ILCS 115/2 from Ch. 85, par. 612
4444 Amends the State Finance Act and the State Revenue Sharing Act. Provides that certain provisions concerning distributions from the State and Local Sales Tax Reform Fund and from the Local Government Distributive Fund constitute an irrevocable and continuing appropriation. Effective immediately.
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4747 A BILL FOR
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5353 30 ILCS 105/6z-17 from Ch. 127, par. 142z-17
5454 30 ILCS 115/1 from Ch. 85, par. 611
5555 30 ILCS 115/2 from Ch. 85, par. 612
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7474 1 0.6% shall be distributed by the Department of Revenue each
7575 2 month out of the Fund to the Madison County Mass Transit
7676 3 District, (iv) the following amounts, plus any cumulative
7777 4 deficiency in such transfers for prior months, shall be
7878 5 transferred monthly into the Build Illinois Fund and credited
7979 6 to the Build Illinois Bond Account therein:
8080 7Fiscal YearAmount81990$2,700,000919911,850,0001019922,750,0001119932,950,000 7 Fiscal Year Amount 8 1990 $2,700,000 9 1991 1,850,000 10 1992 2,750,000 11 1993 2,950,000
8181 7 Fiscal Year Amount
8282 8 1990 $2,700,000
8383 9 1991 1,850,000
8484 10 1992 2,750,000
8585 11 1993 2,950,000
8686 12 From Fiscal Year 1994 through Fiscal Year 2025 the
8787 13 transfer shall total $3,150,000 monthly, plus any cumulative
8888 14 deficiency in such transfers for prior months, and (v) the
8989 15 remainder of the money paid into the State and Local Sales Tax
9090 16 Reform Fund shall be transferred into the Local Government
9191 17 Distributive Fund and, except for municipalities with
9292 18 1,000,000 or more inhabitants which shall receive no portion
9393 19 of such remainder, shall be distributed, subject to
9494 20 appropriation, in the manner provided by Section 2 of the
9595 21 State Revenue Sharing Act "An Act in relation to State revenue
9696 22 sharing with local government entities", approved July 31,
9797 23 1969, as now or hereafter amended. Municipalities with more
9898 24 than 50,000 inhabitants according to the 1980 U.S. Census and
9999 25 located within the Metro East Mass Transit District receiving
100100 26 funds pursuant to provision (v) of this paragraph may expend
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109109 7 Fiscal Year Amount
110110 8 1990 $2,700,000
111111 9 1991 1,850,000
112112 10 1992 2,750,000
113113 11 1993 2,950,000
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118118 1 such amounts to fund and establish a program for developing
119119 2 and coordinating public and private resources targeted to meet
120120 3 the affordable housing needs of low-income and very low-income
121121 4 households within such municipality.
122122 5 Moneys transferred from the Grocery Tax Replacement Fund
123123 6 to the State and Local Sales Tax Reform Fund under Section
124124 7 6z-130 shall be treated under this Section in the same manner
125125 8 as if they had been remitted with the return on which they were
126126 9 reported.
127127 10 (b) Beginning on the first day of the first calendar month
128128 11 to occur on or after the effective date of this amendatory Act
129129 12 of the 98th General Assembly, each month the Department of
130130 13 Revenue shall certify to the State Comptroller and the State
131131 14 Treasurer, and the State Comptroller shall order transferred
132132 15 and the State Treasurer shall transfer from the State and
133133 16 Local Sales Tax Reform Fund to the Tax Compliance and
134134 17 Administration Fund, an amount equal to 1/12 of 5% of 20% of
135135 18 the cash receipts collected during the preceding fiscal year
136136 19 by the Audit Bureau of the Department of Revenue under the Use
137137 20 Tax Act, the Service Use Tax Act, the Service Occupation Tax
138138 21 Act, the Retailers' Occupation Tax Act, and associated local
139139 22 occupation and use taxes administered by the Department. The
140140 23 amount distributed under subsection (a) each month shall first
141141 24 be reduced by the amount transferred to the Tax Compliance and
142142 25 Administration Fund under this subsection (b). Moneys
143143 26 transferred to the Tax Compliance and Administration Fund
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154154 1 under this subsection (b) shall be used, subject to
155155 2 appropriation, to fund additional auditors and compliance
156156 3 personnel at the Department of Revenue.
157157 4 (c) The provisions of this Section directing the
158158 5 distributions from the State and Local Sales Tax Reform Fund,
159159 6 including, but not limited to, amounts that are distributed in
160160 7 the manner provided by Section 2 of the State Revenue Sharing
161161 8 Act, shall constitute an irrevocable and continuing
162162 9 appropriation of all amounts as provided in this Section. The
163163 10 State Treasurer and State Comptroller are hereby authorized to
164164 11 make distributions as provided in this Section.
165165 12 (Source: P.A. 102-700, eff. 4-19-22.)
166166 13 Section 10. The State Revenue Sharing Act is amended by
167167 14 changing Sections 1 and 2 as follows:
168168 15 (30 ILCS 115/1) (from Ch. 85, par. 611)
169169 16 Sec. 1. Local Government Distributive Fund. Through June
170170 17 30, 1994, as soon as may be after the first day of each month
171171 18 the Department of Revenue shall certify to the Treasurer an
172172 19 amount equal to 1/12 of the net revenue realized from the tax
173173 20 imposed by subsections (a) and (b) of Section 201 of the
174174 21 Illinois Income Tax Act during the preceding month. Beginning
175175 22 July 1, 1994, and continuing through June 30, 1995, as soon as
176176 23 may be after the first day of each month, the Department of
177177 24 Revenue shall certify to the Treasurer an amount equal to 1/11
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188188 1 of the net revenue realized from the tax imposed by
189189 2 subsections (a) and (b) of Section 201 of the Illinois Income
190190 3 Tax Act during the preceding month. Beginning July 1, 1995, as
191191 4 soon as may be after the first day of each month, the
192192 5 Department of Revenue shall certify to the Treasurer an amount
193193 6 equal to the amounts calculated pursuant to subsection (b) of
194194 7 Section 901 of the Illinois Income Tax Act based on the net
195195 8 revenue realized from the tax imposed by subsections (a) and
196196 9 (b) of Section 201 of the Illinois Income Tax Act during the
197197 10 preceding month. Net revenue realized for a month shall be
198198 11 defined as the revenue from the tax imposed by subsections (a)
199199 12 and (b) of Section 201 of the Illinois Income Tax Act which is
200200 13 deposited in the General Revenue Fund, the Education
201201 14 Assistance Fund and the Income Tax Surcharge Local Government
202202 15 Distributive Fund during the month minus the amount paid out
203203 16 of the General Revenue Fund in State warrants during that same
204204 17 month as refunds to taxpayers for overpayment of liability
205205 18 under the tax imposed by subsections (a) and (b) of Section 201
206206 19 of the Illinois Income Tax Act. Upon receipt of such
207207 20 certification, the Treasurer shall transfer from the General
208208 21 Revenue Fund to a special fund in the State treasury, to be
209209 22 known as the "Local Government Distributive Fund", the amount
210210 23 shown on such certification.
211211 24 Beginning on the effective date of this amendatory Act of
212212 25 the 98th General Assembly, the Comptroller shall perform the
213213 26 transfers required by this Section no later than 60 days after
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224224 1 he or she receives the certification from the Treasurer.
225225 2 This Section constitutes an irrevocable and continuing
226226 3 appropriation of all All amounts that are paid into the Local
227227 4 Government Distributive Fund in accordance with this Section
228228 5 or from any other other source and that are allocated pursuant
229229 6 to this Act are appropriated on a continuing basis. The State
230230 7 Treasurer and State Comptroller are hereby authorized to make
231231 8 distributions as provided in this Act.
232232 9 (Source: P.A. 98-1052, eff. 8-26-14.)
233233 10 (30 ILCS 115/2) (from Ch. 85, par. 612)
234234 11 Sec. 2. Allocation and Disbursement.
235235 12 (a) As soon as may be after the first day of each month,
236236 13 the Department of Revenue shall allocate among the several
237237 14 municipalities and counties of this State the amount available
238238 15 in the Local Government Distributive Fund and in the Income
239239 16 Tax Surcharge Local Government Distributive Fund, determined
240240 17 as provided in Sections 1 and 1a above. Except as provided in
241241 18 Sections 13 and 13.1 of this Act, the Department shall then
242242 19 certify such allocations to the State Comptroller, who shall
243243 20 pay over to the several municipalities and counties the
244244 21 respective amounts allocated to them. The amount of such Funds
245245 22 allocable to each such municipality and county shall be in
246246 23 proportion to the number of individual residents of such
247247 24 municipality or county to the total population of the State,
248248 25 determined in each case on the basis of the latest census of
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259259 1 the State, municipality or county conducted by the Federal
260260 2 government and certified by the Secretary of State and for
261261 3 annexations to municipalities, the latest Federal, State or
262262 4 municipal census of the annexed area which has been certified
263263 5 by the Department of Revenue. Allocations to the City of
264264 6 Chicago under this Section are subject to Section 6 of the
265265 7 Hotel Operators' Occupation Tax Act. For the purpose of this
266266 8 Section, the number of individual residents of a county shall
267267 9 be reduced by the number of individuals residing therein in
268268 10 municipalities, but the number of individual residents of the
269269 11 State, county and municipality shall reflect the latest census
270270 12 of any of them. The amounts transferred into the Local
271271 13 Government Distributive Fund pursuant to Section 9 of the Use
272272 14 Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the
273273 15 Service Occupation Tax Act, and Section 3 of the Retailers'
274274 16 Occupation Tax Act, each as now or hereafter amended, pursuant
275275 17 to the amendments of such Sections by Public Act 85-1135,
276276 18 shall be distributed as provided in said Sections.
277277 19 (b) It is the intent of the General Assembly that
278278 20 allocations made under this Section shall be made in a fair and
279279 21 equitable manner. Accordingly, the clerk of any municipality
280280 22 to which territory has been annexed, or from which territory
281281 23 has been disconnected, shall notify the Department of Revenue
282282 24 in writing of that annexation or disconnection and shall (1)
283283 25 state the number of residents within the territory that was
284284 26 annexed or disconnected, based on the last census conducted by
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295295 1 the federal, State, or municipal government and certified by
296296 2 the Illinois Secretary of State, and (2) furnish therewith a
297297 3 certified copy of the plat of annexation or, in the case of
298298 4 disconnection, the ordinance, final judgment, or resolution of
299299 5 disconnection together with an accurate depiction of the
300300 6 territory disconnected. The county in which the annexed or
301301 7 disconnected territory is located shall verify that the number
302302 8 of residents stated on the written notice that is to be sent to
303303 9 the Department of Revenue is true and accurate. The verified
304304 10 statement of the county shall accompany the written notice.
305305 11 However, if the county does not respond to the municipality's
306306 12 request for verification within 30 days, this verification
307307 13 requirement shall be waived. The written notice shall be
308308 14 provided to the Department of Revenue (1) within 30 days after
309309 15 the effective date of this amendatory Act of the 96th General
310310 16 Assembly for disconnections occurring after January 1, 2007
311311 17 and before the effective date of this amendatory Act of the
312312 18 96th General Assembly or (2) within 30 days after the
313313 19 annexation or disconnection for annexations or disconnections
314314 20 occurring on or after the effective date of this amendatory
315315 21 Act of the 96th General Assembly. For purposes of this
316316 22 Section, a disconnection or annexation through court order is
317317 23 deemed to be effective 30 days after the entry of a final
318318 24 judgment order, unless stayed pending appeal. Thereafter, the
319319 25 monthly allocation made to the municipality and to any other
320320 26 municipality or county affected by the annexation or
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331331 1 disconnection shall be adjusted in accordance with this
332332 2 Section to reflect the change in residency of the residents of
333333 3 the territory that was annexed or disconnected. The adjustment
334334 4 shall be made no later than 30 days after the Department of
335335 5 Revenue's receipt of the written notice of annexation or
336336 6 disconnection described in this Section.
337337 7 (Source: P.A. 96-1040, eff. 7-14-10.)
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