• Editor’s Note: This article is part of a series focusing on Kane County Legislative Committee positions and initiatives. The committee is co-chaired by Susan Starrett and Barbara Hernandez and typically meets at 10 a.m. on the third Wednesday of the month. The next Legislative Committee meeting is set for 10 a.m. Wednesday, April 19, 2017, in the County Boardroom of Building A at the Kane County Government Center, 719 S. Batavia Ave., Geneva. For agenda packets and minutes of previous meetings, visit this page of the Kane County website.

The Kane County Legislative Committee is supporting state legislation that would ensure that up to 10 percent of income tax monies collected by the state and put into the General Fund are distributed to local governments rather than used by the state as part of a budget-crisis solution.

Specifically, Kane County’s Legislative Committee is supporting House Bill 0278, which passed 67-47 in a house third reading on March 7 and now moves to the Illinois Senate’s Assignments Committee.

Kane County Legislative Committee’s Position

The county Legislative Committee supports this bill because it would increase revenue Kane County would receive from the taxes already paid to the state. Legislative Committee Co-Chair Susan Starrett says that local-government revenue stream amounts to about $30 million in 2017, $100 million in 2018, $175 million in 2019, $258 million in 2020 and $314 million in 2021.

“Kane County would benefit greatly from this bill as the unfunded mandates continue to increase at the local level,” Starrett said. “This would contribute to our goal of keeping the tax levy low.”

HB0278 Summary

This bill would amend the Illinois Income Tax Act by transferring larger percentages of taxes imposed on individuals, trusts, estates and corporations from the General Revenue Fund to the Local Government Distributive Fund beginning in 2018. The final increase in percentages would cap at 10 percent in 2020.

House Sponsor: Rep. Anthony DeLuca

Website: www.ilga.gov; Search for HB0278

House Sponsors: Anthony DeLuca, Martin J. Moylan, Kathleen Willis, Emanuel Chris Welch, Silvana Tabares, Michael Halpin, André Thapedi, Robert Rita, John C. D’Amico, William Davis, Linda Chapa LaVia, Anna Moeller, Marcus C. Evans, Jr., Camille Y. Lilly, Al Riley, Frances Ann Hurley, Thaddeus Jones, Rita Mayfield, Brandon W. Phelps, Daniel V. Beiser, Jerry Costello, II, Deb Conroy, Sue Scherer, Sonya M. Harper, Theresa Mah, Carol Sente, Lawrence Walsh, Jr., Mary E. Flowers, Jay Hoffman, Justin Slaughter, Michael J. Zalewski, Katie Stuart, Sam Yingling and Natalie A. Manley.

Senate Sponsors: Thomas Cullerton

Synopsis As Introduced

Amends the Illinois Income Tax Act. Provides that, from Feb. 1, 2017, through Jan. 31, 2018, the amount transferred from the General Revenue Fund to the Local Government Distributive Fund shall be:

• (i) 8.5% of the net revenue realized from the tax imposed on individuals, trusts, and estates, and
• (ii) 9.355% of the net revenue realized from the tax imposed on corporations.

Provides that, from Feb. 1, 2018 through Jan. 31, 2019, the amount transferred from the General Revenue Fund to the Local Government Distributive Fund shall be:

• (i) 9% of the net revenue realized from the tax imposed on individuals, trusts, and estates, and
• (ii) 9.57% of the net revenue realized from the tax imposed on corporations.

Provides that, from Feb. 1, 2019 through Jan. 31, 2020, the amount transferred from the General Revenue Fund to the Local Government Distributive Fund shall be:

• (i) 9.5% of the net revenue realized from the tax imposed on individuals, trusts, and estates, and
• (ii) 9.785% of the net revenue realized from the tax imposed on corporations.

Provides that, beginning on Feb. 1, 2020, the Treasurer shall transfer each month from the General Revenue Fund to the Local Government Distributive Fund an amount equal to 10% of the net revenue realized from the tax imposed on individuals, trusts, estates, and corporations during the preceding month. Effective immediately.

Fiscal Note (Department of Revenue)

Although this bill would have no effect on total revenue, the Department of Revenue estimates that deposits into the General Revenue Fund for fiscal year 2017 would be reduced by $30 million. Deposits into the General Revenue Fund for fiscal year 2018 would be reduced by $100 million. Deposits into the General Revenue Fund for fiscal year 2019 would be reduced by $175 million. Deposits into the General Revenue Fund for fiscal year 2020 would be reduced by $258 million. Deposits into the General Revenue Fund for fiscal year 2121 would be reduced by $314 million.

After that, the amount of deposits into General Revenue Fund would be reduced increasingly, as individual income tax and corporate income tax revenue keep growing.

This estimate was calculated by multiplying the net corporate income tax and individual income tax revenue forecasts by the difference between actual Local Government Distributive Fund transfer percentages and proposed Local Government Distributive Fund transfer percentages.

Last Action

• Date: 3/8/2017
• Chamber: Senate
• Action: Referred to Assignments

Actions History

• 1/5/2017 House — Prefiled with Clerk by Rep. Anthony DeLuca
• 1/11/2017 House — First Reading
• 1/11/2017 House — Referred to Rules Committee
• 1/25/2017 House — Assigned to Cities & Villages Committee
• 2/8/2017 House — Do Pass / Short Debate Cities & Villages Committee;  008-005-000
• 2/8/2017 House — Placed on Calendar 2nd Reading – Short Debate
• 2/8/2017 House — Added Chief Co-Sponsor Rep. Martin J. Moylan
• 2/8/2017 House — Added Chief Co-Sponsor Rep. Kathleen Willis
• 2/9/2017 House — Added Co-Sponsor Rep. Silvana Tabares
• 2/15/2017 House — Fiscal Note Requested by Rep. Tom Demmer
• 2/16/2017 House — Second Reading – Short Debate
• 2/16/2017 House — Held on Calendar Order of Second Reading – Short Debate
• 2/21/2017 House — Added Chief Co-Sponsor Rep. Emanuel Chris Welch
• 2/21/2017 House — Added Co-Sponsor Rep. Michael Halpin
• 2/22/2017 House — Added Co-Sponsor Rep. André Thapedi
• 2/22/2017 House — Added Co-Sponsor Rep. Robert Rita
• 2/22/2017 House — Added Co-Sponsor Rep. John C. D’Amico
• 2/22/2017 House — Added Co-Sponsor Rep. William Davis
• 2/22/2017 House — Added Co-Sponsor Rep. Linda Chapa LaVia
• 2/22/2017 House — Added Co-Sponsor Rep. Anna Moeller
• 2/22/2017 House — Added Co-Sponsor Rep. Marcus C. Evans, Jr.
• 2/22/2017 House — Added Co-Sponsor Rep. Camille Y. Lilly
• 2/22/2017 House — Added Co-Sponsor Rep. Al Riley
• 2/22/2017 House — Added Co-Sponsor Rep. Frances Ann Hurley
• 2/22/2017 House — Added Co-Sponsor Rep. Thaddeus Jones
• 2/22/2017 House — Added Co-Sponsor Rep. Rita Mayfield
• 2/22/2017 House — Fiscal Note Filed
• 2/23/2017 House — Added Co-Sponsor Rep. Brandon W. Phelps
• 2/23/2017 House — Added Co-Sponsor Rep. Daniel V. Beiser
• 2/23/2017 House — Added Co-Sponsor Rep. Jerry Costello, II
• 2/23/2017 House — Added Co-Sponsor Rep. Deb Conroy
• 2/23/2017 House— Added Co-Sponsor Rep. Sue Scherer
• 2/23/2017 House — Placed on Calendar Order of 3rd Reading – Short Debate
• 2/24/2017 House — Added Co-Sponsor Rep. Sonya M. Harper
• 2/24/2017 House — Added Co-Sponsor Rep. Theresa Mah
• 2/24/2017 House — Added Co-Sponsor Rep. Carol Sente
• 2/24/2017 House — Added Co-Sponsor Rep. Lawrence Walsh, Jr.
• 2/24/2017 House — Added Co-Sponsor Rep. Mary E. Flowers
• 2/24/2017 House — Added Co-Sponsor Rep. Jay Hoffman
• 2/24/2017 House — Added Co-Sponsor Rep. Justin Slaughter
• 2/24/2017 House — Added Co-Sponsor Rep. Michael J. Zalewski
• 2/24/2017 House — Added Co-Sponsor Rep. Katie Stuart
• 2/24/2017 House — Added Co-Sponsor Rep. Sam Yingling
• 2/24/2017 House — Added Co-Sponsor Rep. Natalie A. Manley
• 3/7/2017 House — Third Reading – Short Debate – Passed 067-047-000
• 3/8/2017 Senate — Arrive in Senate
• 3/8/2017 Senate — Placed on Calendar Order of First Reading
• 3/8/2017 Senate Chief Senate Sponsor Sen. Thomas Cullerton
• 3/8/2017 Senate First Reading
• 3/8/2017 Senate — Referred to Assignments

Vote History – 3rd Reading, House

• Andersson – NO
• Chapa LaVia – YES
• Fortner – NO
• Kifowit – YES
• Moeller – YES
• Pritchard – YES
• Skillacorn – NO
• Wheeler – NO