SB 3780

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Full Text of SB3780
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	SB3780 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3780
Introduced 2/5/2026, by Sen. Donald P. DeWitte
SYNOPSIS AS INTRODUCED:
35 ILCS 5/901
Amends the Illinois Income Tax Act. Provides that an amount equal to 10% of the net revenue realized from the State income tax during the preceding month shall be transferred from the General Revenue Fund to the Local Government Distributive Fund (currently, the amount transferred is equal to the sum of (i) 6.47% of the net revenue realized from the tax imposed upon individuals, trusts, and estates during the preceding month; (ii) 6.85% of the net revenue realized from the tax imposed upon corporations during the preceding month; and (iii) 6.47% of the net revenue realized from the tax imposed upon electing pass-through entities). Effective immediately.
LRB104 19160 HLH 32605 b
A BILL FOR
		SB3780		LRB104 19160 HLH 32605 b
1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 901 as follows:
6    (35 ILCS 5/901)
7    Sec. 901. Collection authority.
8    (a) In general. The Department shall collect the taxes
9imposed by this Act. The Department shall collect certified
10past due child support amounts under Section 2505-650 of the
11Department of Revenue Law of the Civil Administrative Code of
12Illinois. Except as provided in subsections (b), (c), (e),
13(f), (g), and (h) of this Section, money collected pursuant to
14subsections (a) and (b) of Section 201 of this Act shall be
15paid into the General Revenue Fund in the State treasury;
16money collected pursuant to subsections (c) and (d) of Section
17201 of this Act shall be paid into the Personal Property Tax
18Replacement Fund, a special fund in the State treasury
19[Treasury]; and money collected under Section 2505-650 of the
20Department of Revenue Law of the Civil Administrative Code of
21Illinois shall be paid into the Child Support Enforcement
22Trust Fund, a special fund outside the State treasury
23[Treasury], or to the State Disbursement Unit established under
		SB3780	- 2 -	LRB104 19160 HLH 32605 b
1Section 10-26 of the Illinois Public Aid Code, as directed by
2the Department of Healthcare and Family Services.
3    (b) Local Government Distributive Fund. Beginning August
41, 2017 and continuing through July 31, 2022, the Treasurer
5shall transfer each month from the General Revenue Fund to the
6Local Government Distributive Fund an amount equal to the sum
7of: (i) 6.06% (10% of the ratio of the 3% individual income tax
8rate prior to 2011 to the 4.95% individual income tax rate
9after July 1, 2017) of the net revenue realized from the tax
10imposed by subsections (a) and (b) of Section 201 of this Act
11upon individuals, trusts, and estates during the preceding
12month; (ii) 6.85% (10% of the ratio of the 4.8% corporate
13income tax rate prior to 2011 to the 7% corporate income tax
14rate after July 1, 2017) of the net revenue realized from the
15tax imposed by subsections (a) and (b) of Section 201 of this
16Act upon corporations during the preceding month; and (iii)
17beginning February 1, 2022, 6.06% of the net revenue realized
18from the tax imposed by subsection (p) of Section 201 of this
19Act upon electing pass-through entities. Beginning August 1,
202022 and continuing through July 31, 2023, the Treasurer shall
21transfer each month from the General Revenue Fund to the Local
22Government Distributive Fund an amount equal to the sum of:
23(i) 6.16% of the net revenue realized from the tax imposed by
24subsections (a) and (b) of Section 201 of this Act upon
25individuals, trusts, and estates during the preceding month;
26(ii) 6.85% of the net revenue realized from the tax imposed by
		SB3780	- 3 -	LRB104 19160 HLH 32605 b
1subsections (a) and (b) of Section 201 of this Act upon
2corporations during the preceding month; and (iii) 6.16% of
3the net revenue realized from the tax imposed by subsection
4(p) of Section 201 of this Act upon electing pass-through
5entities. Beginning August 1, 2023 and continuing through July 
631, 2026, the Treasurer shall transfer each month from the
7General Revenue Fund to the Local Government Distributive Fund
8an amount equal to the sum of: (i) 6.47% of the net revenue
9realized from the tax imposed by subsections (a) and (b) of
10Section 201 of this Act upon individuals, trusts, and estates
11during the preceding month; (ii) 6.85% of the net revenue
12realized from the tax imposed by subsections (a) and (b) of
13Section 201 of this Act upon corporations during the preceding
14month; and (iii) 6.47% of the net revenue realized from the tax
15imposed by subsection (p) of Section 201 of this Act upon
16electing pass-through entities Beginning August 1, 2026, the 
17Treasurer shall transfer each month from the General Revenue 
18Fund to the Local Government Distributive Fund an amount equal 
19to 10% of the net revenue realized from the tax imposed by 
20subsections (a) and (b) of Section 201 of the Illinois Income 
21Tax Act during the preceding month.. Net revenue realized for
22a month shall be defined as the revenue from the tax imposed by
23subsections (a) and (b) of Section 201 of this Act which is
24deposited into the General Revenue Fund, the Education
25Assistance Fund, the Income Tax Surcharge Local Government
26Distributive Fund, the Fund for the Advancement of Education,
		SB3780	- 4 -	LRB104 19160 HLH 32605 b
1and the Commitment to Human Services Fund during the month
2minus the amount paid out of the General Revenue Fund in State
3warrants during that same month as refunds to taxpayers for
4overpayment of liability under the tax imposed by subsections
5(a) and (b) of Section 201 of this Act.
6    Notwithstanding any provision of law to the contrary,
7beginning on July 6, 2017 (the effective date of Public Act
8100-23), those amounts required under this subsection (b) to
9be transferred by the Treasurer into the Local Government
10Distributive Fund from the General Revenue Fund shall be
11directly deposited into the Local Government Distributive Fund
12as the revenue is realized from the tax imposed by subsections
13(a) and (b) of Section 201 of this Act.
14    (c) Deposits Into Income Tax Refund Fund.
15        (1) Beginning on January 1, 1989 and thereafter, the
16    Department shall deposit a percentage of the amounts
17    collected pursuant to subsections (a) and (b)(1), (2), and
18    (3) of Section 201 of this Act into a fund in the State
19    treasury known as the Income Tax Refund Fund. Beginning
20    with State fiscal year 1990 and for each fiscal year
21    thereafter, the percentage deposited into the Income Tax
22    Refund Fund during a fiscal year shall be the Annual
23    Percentage. For fiscal year 2011, the Annual Percentage
24    shall be 8.75%. For fiscal year 2012, the Annual
25    Percentage shall be 8.75%. For fiscal year 2013, the
26    Annual Percentage shall be 9.75%. For fiscal year 2014,
		SB3780	- 5 -	LRB104 19160 HLH 32605 b
1    the Annual Percentage shall be 9.5%. For fiscal year 2015,
2    the Annual Percentage shall be 10%. For fiscal year 2018,
3    the Annual Percentage shall be 9.8%. For fiscal year 2019,
4    the Annual Percentage shall be 9.7%. For fiscal year 2020,
5    the Annual Percentage shall be 9.5%. For fiscal year 2021,
6    the Annual Percentage shall be 9%. For fiscal year 2022,
7    the Annual Percentage shall be 9.25%. For fiscal year
8    2023, the Annual Percentage shall be 9.25%. For fiscal
9    year 2024, the Annual Percentage shall be 9.15%. For
10    fiscal year 2025, the Annual Percentage shall be 9.15%.
11    For fiscal year 2026, the Annual Percentage shall be
12    9.15%. For all other fiscal years, the Annual Percentage
13    shall be calculated as a fraction, the numerator of which
14    shall be the amount of refunds approved for payment by the
15    Department during the preceding fiscal year as a result of
16    overpayment of tax liability under subsections (a) and
17    (b)(1), (2), and (3) of Section 201 of this Act plus the
18    amount of such refunds remaining approved but unpaid at
19    the end of the preceding fiscal year, minus the amounts
20    transferred into the Income Tax Refund Fund from the
21    Tobacco Settlement Recovery Fund, and the denominator of
22    which shall be the amounts which will be collected
23    pursuant to subsections (a) and (b)(1), (2), and (3) of
24    Section 201 of this Act during the preceding fiscal year;
25    except that in State fiscal year 2002, the Annual
26    Percentage shall in no event exceed 7.6%. The Director of
		SB3780	- 6 -	LRB104 19160 HLH 32605 b
1    Revenue shall certify the Annual Percentage to the
2    Comptroller on the last business day of the fiscal year
3    immediately preceding the fiscal year for which it is to
4    be effective.
5        (2) 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)(6), (7), and
8    (8), (c) and (d) of Section 201 of this Act into a fund in
9    the State treasury known as the Income Tax Refund Fund.
10    Beginning with State fiscal year 1990 and for each fiscal
11    year thereafter, the percentage deposited into the Income
12    Tax Refund Fund during a fiscal year shall be the Annual
13    Percentage. For fiscal year 2011, the Annual Percentage
14    shall be 17.5%. For fiscal year 2012, the Annual
15    Percentage shall be 17.5%. For fiscal year 2013, the
16    Annual Percentage shall be 14%. For fiscal year 2014, the
17    Annual Percentage shall be 13.4%. For fiscal year 2015,
18    the Annual Percentage shall be 14%. For fiscal year 2018,
19    the Annual Percentage shall be 17.5%. For fiscal year
20    2019, the Annual Percentage shall be 15.5%. For fiscal
21    year 2020, the Annual Percentage shall be 14.25%. For
22    fiscal year 2021, the Annual Percentage shall be 14%. For
23    fiscal year 2022, the Annual Percentage shall be 15%. For
24    fiscal year 2023, the Annual Percentage shall be 14.5%.
25    For fiscal year 2024, the Annual Percentage shall be 14%.
26    For fiscal year 2025, the Annual Percentage shall be 14%.
		SB3780	- 7 -	LRB104 19160 HLH 32605 b
1    For fiscal year 2026, the Annual Percentage shall be 14%.
2    For all other fiscal years, the Annual Percentage shall be
3    calculated as a fraction, the numerator of which shall be
4    the amount of refunds approved for payment by the
5    Department during the preceding fiscal year as a result of
6    overpayment of tax liability under subsections (a) and
7    (b)(6), (7), and (8), (c) and (d) of Section 201 of this
8    Act plus the amount of such refunds remaining approved but
9    unpaid at the end of the preceding fiscal year, and the
10    denominator of which shall be the amounts which will be
11    collected pursuant to subsections (a) and (b)(6), (7), and
12    (8), (c) and (d) of Section 201 of this Act during the
13    preceding fiscal year; except that in State fiscal year
14    2002, the Annual Percentage shall in no event exceed 23%.
15    The Director of Revenue shall certify the Annual
16    Percentage to the Comptroller on the last business day of
17    the fiscal year immediately preceding the fiscal year for
18    which it is to be effective.
19        (3) The Comptroller shall order transferred and the
20    Treasurer shall transfer from the Tobacco Settlement
21    Recovery Fund to the Income Tax Refund Fund (i)
22    $35,000,000 in January, 2001, (ii) $35,000,000 in January,
23    2002, and (iii) $35,000,000 in January, 2003.
24    (d) Expenditures from Income Tax Refund Fund.
25        (1) Beginning January 1, 1989, money in the Income Tax
26    Refund Fund shall be expended exclusively for the purpose
		SB3780	- 8 -	LRB104 19160 HLH 32605 b
1    of paying refunds resulting from overpayment of tax
2    liability under Section 201 of this Act and for making
3    transfers pursuant to this subsection (d), except that in
4    State fiscal years 2022 and 2023, moneys in the Income Tax
5    Refund Fund shall also be used to pay one-time rebate
6    payments as provided under Sections 208.5 and 212.1.
7        (2) The Director shall order payment of refunds
8    resulting from overpayment of tax liability under Section
9    201 of this Act from the Income Tax Refund Fund only to the
10    extent that amounts collected pursuant to Section 201 of
11    this Act and transfers pursuant to this subsection (d) and
12    item (3) of subsection (c) have been deposited and
13    retained in the Fund.
14        (3) As soon as possible after the end of each fiscal
15    year, the Director shall order transferred and the State
16    Treasurer and State Comptroller shall transfer from the
17    Income Tax Refund Fund to the Personal Property Tax
18    Replacement Fund an amount, certified by the Director to
19    the Comptroller, equal to the excess of the amount
20    collected pursuant to subsections (c) and (d) of Section
21    201 of this Act deposited into the Income Tax Refund Fund
22    during the fiscal year over the amount of refunds
23    resulting from overpayment of tax liability under
24    subsections (c) and (d) of Section 201 of this Act paid
25    from the Income Tax Refund Fund during the fiscal year.
26        (4) As soon as possible after the end of each fiscal
		SB3780	- 9 -	LRB104 19160 HLH 32605 b
1    year, the Director shall order transferred and the State
2    Treasurer and State Comptroller shall transfer from the
3    Personal Property Tax Replacement Fund to the Income Tax
4    Refund Fund an amount, certified by the Director to the
5    Comptroller, equal to the excess of the amount of refunds
6    resulting from overpayment of tax liability under
7    subsections (c) and (d) of Section 201 of this Act paid
8    from the Income Tax Refund Fund during the fiscal year
9    over the amount collected pursuant to subsections (c) and
10    (d) of Section 201 of this Act deposited into the Income
11    Tax Refund Fund during the fiscal year.
12        (4.5) As soon as possible after the end of fiscal year
13    1999 and of each fiscal year thereafter, the Director
14    shall order transferred and the State Treasurer and State
15    Comptroller shall transfer from the Income Tax Refund Fund
16    to the General Revenue Fund any surplus remaining in the
17    Income Tax Refund Fund as of the end of such fiscal year;
18    excluding for fiscal years 2000, 2001, and 2002 amounts
19    attributable to transfers under item (3) of subsection (c)
20    less refunds resulting from the earned income tax credit,
21    and excluding for fiscal year 2022 amounts attributable to
22    transfers from the General Revenue Fund authorized by
23    Public Act 102-700. For purposes of this item (4.5),
24    "surplus" means the cash balance in the Income Tax Refund
25    Fund at the end of such fiscal year, less amounts
26    attributable to transfers under item (3) of this
		SB3780	- 10 -	LRB104 19160 HLH 32605 b
1    subsection (d).
2        (5) This Act shall constitute an irrevocable and
3    continuing appropriation from the Income Tax Refund Fund
4    for the purposes of (i) paying refunds upon the order of
5    the Director in accordance with the provisions of this
6    Section and (ii) paying one-time rebate payments under
7    Sections 208.5 and 212.1.
8    (e) Deposits into the Education Assistance Fund and the
9Income Tax Surcharge Local Government Distributive Fund. On
10July 1, 1991, and thereafter, of the amounts collected
11pursuant to subsections (a) and (b) of Section 201 of this Act,
12minus deposits into the Income Tax Refund Fund, the Department
13shall deposit 7.3% into the Education Assistance Fund in the
14State treasury [Treasury]. Beginning July 1, 1991, and
15continuing through January 31, 1993, of the amounts collected
16pursuant to subsections (a) and (b) of Section 201 of the
17Illinois Income Tax Act, minus deposits into the Income Tax
18Refund Fund, the Department shall deposit 3.0% into the Income
19Tax Surcharge Local Government Distributive Fund in the State
20treasury [Treasury]. Beginning February 1, 1993 and continuing
21through June 30, 1993, of the amounts collected pursuant to
22subsections (a) and (b) of Section 201 of the Illinois Income
23Tax Act, minus deposits into the Income Tax Refund Fund, the
24Department shall deposit 4.4% into the Income Tax Surcharge
25Local Government Distributive Fund in the State treasury
26[Treasury]. Beginning July 1, 1993, and continuing through June
		SB3780	- 11 -	LRB104 19160 HLH 32605 b
130, 1994, of the amounts collected under subsections (a) and
2(b) of Section 201 of this Act, minus deposits into the Income
3Tax Refund Fund, the Department shall deposit 1.475% into the
4Income Tax Surcharge Local Government Distributive Fund in the
5State treasury [Treasury].
6    (f) Deposits into the Fund for the Advancement of
7Education. Beginning February 1, 2015, the Department shall
8deposit the following portions of the revenue realized from
9the tax imposed upon individuals, trusts, and estates by
10subsections (a) and (b) of Section 201 of this Act, minus
11deposits into the Income Tax Refund Fund, into the Fund for the
12Advancement of Education:
13        (1) beginning February 1, 2015, and prior to February
14    1, 2025, 1/30; and
15        (2) beginning February 1, 2025, 1/26.
16    If the rate of tax imposed by subsection (a) and (b) of
17Section 201 is reduced pursuant to Section 201.5 of this Act,
18the Department shall not make the deposits required by this
19subsection (f) on or after the effective date of the
20reduction.
21    (g) Deposits into the Commitment to Human Services Fund.
22Beginning February 1, 2015, the Department shall deposit the
23following portions of the revenue realized from the tax
24imposed upon individuals, trusts, and estates by subsections
25(a) and (b) of Section 201 of this Act, minus deposits into the
26Income Tax Refund Fund, into the Commitment to Human Services
		SB3780	- 12 -	LRB104 19160 HLH 32605 b
1Fund:
2        (1) beginning February 1, 2015, and prior to February
3    1, 2025, 1/30; and
4        (2) beginning February 1, 2025, 1/26.
5    If the rate of tax imposed by subsection (a) and (b) of
6Section 201 is reduced pursuant to Section 201.5 of this Act,
7the Department shall not make the deposits required by this
8subsection (g) on or after the effective date of the
9reduction.
10    (h) Deposits into the Tax Compliance and Administration
11Fund. Beginning on the first day of the first calendar month to
12occur on or after August 26, 2014 (the effective date of Public
13Act 98-1098), each month the Department shall pay into the Tax
14Compliance and Administration Fund, to be used, subject to
15appropriation, to fund additional auditors and compliance
16personnel at the Department, an amount equal to 1/12 of 5% of
17the cash receipts collected during the preceding fiscal year
18by the Audit Bureau of the Department from the tax imposed by
19subsections (a), (b), (c), and (d) of Section 201 of this Act,
20net of deposits into the Income Tax Refund Fund made from those
21cash receipts.
22(Source: P.A. 103-8, eff. 6-7-23; 103-154, eff. 6-30-23;
23103-588, eff. 6-5-24; 104-2, eff. 6-16-25; 104-6, eff.
246-16-25; revised 9-10-25.)
25    Section 99. Effective date. This Act takes effect upon
26becoming law.