REVENUE-LOCAL DISTRIBUTIONS

Illinois General Assembly - Full Text of HB2686

Select Language

×

The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein.

Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet.

The English language version is always the official and authoritative version of this website.

NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window.

Choose Language

English

Afrikaans

Albanian

Arabic

Armenian

Azerbaijani

Basque

Bengali

Bosnian

Catalan

Croatian

Czech

Danish

Dutch

Esperanto

Estonian

Filipino

Finnish

French

Galician

Georgian

German

Greek

Gujarati

Haitian Creole

Hausa

Hawaiian

Hebrew

Hindi

Hungarian

Icelandic

Indonesian

Interlingua

Interlingue

Inuktitut

Irish

Italian

Japanese

Javanese

Kannada

Khmer

Korean

Latin

Latvian

Lithuanian

Luxembourgish

Macedonian

Malagasy

Malayalam

Maltese

Maori

Marathi

Myanmar

Nepali

Norwegian

Odia

Pashto

Punjabi

Romanian

Russian

Samoan

Sango

Sanskrit

Sardinian

Sindhi

Sinhala

Slovak

Slovenian

Somali

Southern Sotho

Spanish

Sundanese

Swahili

Swedish

Tamil

Telugu

Thai

Tigrinya

Tonga

Turkish

Ukrainian

Urdu

Vietnamese

Welsh

Xhosa

Yiddish

Yoruba

Zulu

Powered by
Translate

Close

Illinois General Assembly

Top Navigation Bar

Translate

Learn

Select General Assembly

Search the 104th General Assembly

Enter search terms for legislation, members, committees, or schedules.

ILGA.GOV

LEGISLATION & LAWS

Bills & Resolutions

Public Acts

Illinois Compiled Statutes

Illinois Constitution

Search Legislation

Glossary

Guide

Reports & Inquiry

Legislative Reports

Special Reports

FTP Site

Legislator Lookup

Capitol Complex Phone Numbers

Rules & Regulations

Illinois Register

Administrative Rules

Senate

Members

Schedules

Committees

Request for Remote Testimony

Journals

Transcripts

Rules

Audio/Video

FOIA Information

Senate Employment Opportunities

Media Guidelines

House

Members

Schedules

Committees

Submit testimony for House Committees

Journals

Transcripts

Rules

Audio/Video

FOIA Information

House Employment Opportunities

Log In

Mobile Top Bar

Search the 104th General Assembly

Enter keywords to search the Illinois General Assembly website.

Full Text of HB2686

Home

Legislation

Full Text

HB2686 - 104th General Assembly

Bill Status

Full Text

Votes

Witness Slips

Select Menu

Bill Status

Full Text

Votes

Witness Slips

Printer Friendly Version

Introduced

Printer Friendly Version

Introduced

Open PDF

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB2686

Introduced 2/6/2025, by Rep. William "Will" Davis

SYNOPSIS AS INTRODUCED:

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

A BILL FOR

HB2686
LRB104 03444 HLH 13467 b
1

AN ACT concerning revenue.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The State Finance Act is amended by changing
5
Section 6z-17 as follows:

6

(30 ILCS 105/6z-17)

(from Ch. 127, par. 142z-17)
7

Sec. 6z-17.
State and Local Sales Tax Reform Fund.

8

(a) After deducting the amount transferred to the Tax
9
Compliance and Administration Fund under subsection (b), of
10
the money paid into the State and Local Sales Tax Reform Fund:
11
(i)
subject to appropriation to the Department of Revenue,

12
Municipalities having 1,000,000 or more inhabitants shall
13
receive 20% and may expend such amount to fund and establish a
14
program for developing and coordinating public and private
15
resources targeted to meet the affordable housing needs of
16
low-income and very low-income households within such
17
municipality, (ii) 10% shall be transferred into the Regional
18
Transportation Authority Occupation and Use Tax Replacement
19
Fund, a special fund in the State treasury which is hereby
20
created, (iii) until July 1, 2013, subject to appropriation to
21
the Department of Transportation, the Madison County Mass
22
Transit District shall receive .6%, and beginning on July 1,
23
2013,
subject to appropriation to the Department of Revenue,

HB2686
- 2 -
LRB104 03444 HLH 13467 b
1
0.6% shall be distributed
by the Department of Revenue
each
2
month out of the Fund to the Madison County Mass Transit
3
District, (iv) the following amounts, plus any cumulative
4
deficiency in such transfers for prior months, shall be
5
transferred monthly into the Build Illinois Fund and credited
6
to the Build Illinois Bond Account therein:
7
Fiscal Year
Amount
8
1990
$2,700,000
9
1991
1,850,000
10
1992
2,750,000
11
1993
2,950,000
12

From Fiscal Year 1994 through Fiscal Year 2025 the
13
transfer shall total $3,150,000 monthly, plus any cumulative
14
deficiency in such transfers for prior months, and (v) the
15
remainder of the money paid into the State and Local Sales Tax
16
Reform Fund shall be transferred into the Local Government
17
Distributive Fund and, except for municipalities with
18
1,000,000 or more inhabitants which shall receive no portion
19
of such remainder, shall be distributed
, subject to
20
appropriation,
in the manner provided by Section 2 of
the
21
State Revenue Sharing Act

"An Act in relation to State revenue
22
sharing with local government entities", approved July 31,
23
1969, as now or hereafter amended
. Municipalities with more
24
than 50,000 inhabitants according to the 1980 U.S. Census and
25
located within the Metro East Mass Transit District receiving
26
funds pursuant to provision (v) of this paragraph may expend

HB2686
- 3 -
LRB104 03444 HLH 13467 b
1
such amounts to fund and establish a program for developing
2
and coordinating public and private resources targeted to meet
3
the affordable housing needs of low-income and very low-income
4
households within such municipality.
5

Moneys transferred from the Grocery Tax Replacement Fund
6
to the State and Local Sales Tax Reform Fund under Section
7
6z-130 shall be treated under this Section in the same manner
8
as if they had been remitted with the return on which they were
9
reported.
10

(b) Beginning on the first day of the first calendar month
11
to occur on or after the effective date of this amendatory Act
12
of the 98th General Assembly, each month the Department of
13
Revenue shall certify to the State Comptroller and the State
14
Treasurer, and the State Comptroller shall order transferred
15
and the State Treasurer shall transfer from the State and
16
Local Sales Tax Reform Fund to the Tax Compliance and
17
Administration Fund, an amount equal to 1/12 of 5% of 20% of
18
the cash receipts collected during the preceding fiscal year
19
by the Audit Bureau of the Department of Revenue under the Use
20
Tax Act, the Service Use Tax Act, the Service Occupation Tax
21
Act, the Retailers' Occupation Tax Act, and associated local
22
occupation and use taxes administered by the Department. The
23
amount distributed under subsection (a) each month shall first
24
be reduced by the amount transferred to the Tax Compliance and
25
Administration Fund under this subsection (b). Moneys
26
transferred to the Tax Compliance and Administration Fund

HB2686
- 4 -
LRB104 03444 HLH 13467 b
1
under this subsection (b) shall be used, subject to
2
appropriation, to fund additional auditors and compliance
3
personnel at the Department of Revenue.
4

(c) The provisions of this Section directing the
5
distributions from the State and Local Sales Tax Reform Fund,
6
including, but not limited to, amounts that are distributed in
7
the manner provided by Section 2 of the State Revenue Sharing
8
Act, shall constitute an irrevocable and continuing
9
appropriation of all amounts as provided in this Section. The
10
State Treasurer and State Comptroller are hereby authorized to
11
make distributions as provided in this Section.

12
(Source: P.A. 102-700, eff. 4-19-22.)

13

Section 10.
The State Revenue Sharing Act is amended by
14
changing Sections 1 and 2 as follows:

15

(30 ILCS 115/1)

(from Ch. 85, par. 611)
16

Sec. 1.
Local Government Distributive Fund.
Through June
17
30, 1994, as soon as may be after the first day of each month
18
the Department of Revenue shall certify to the Treasurer an
19
amount equal to 1/12 of the net revenue realized from the tax
20
imposed by subsections (a) and (b) of Section 201 of the
21
Illinois Income Tax Act during the preceding month. Beginning
22
July 1, 1994, and continuing through June 30, 1995, as soon as
23
may be after the first day of each month, the Department of
24
Revenue shall certify to the Treasurer an amount equal to 1/11

HB2686
- 5 -
LRB104 03444 HLH 13467 b
1
of the net revenue realized from the tax imposed by
2
subsections (a) and (b) of Section 201 of the Illinois Income
3
Tax Act during the preceding month. Beginning July 1, 1995, as
4
soon as may be after the first day of each month, the
5
Department of Revenue shall certify to the Treasurer an amount
6
equal to the amounts calculated pursuant to subsection (b) of
7
Section 901 of the Illinois Income Tax Act based on the net
8
revenue realized from the tax imposed by subsections (a) and
9
(b) of Section 201 of the Illinois Income Tax Act during the
10
preceding month. Net revenue realized for a month shall be
11
defined as the revenue from the tax imposed by subsections (a)
12
and (b) of Section 201 of the Illinois Income Tax Act which is
13
deposited in the General Revenue Fund, the Education
14
Assistance Fund and the Income Tax Surcharge Local Government
15
Distributive Fund during the month minus the amount paid out
16
of the General Revenue Fund in State warrants during that same
17
month as refunds to taxpayers for overpayment of liability
18
under the tax imposed by subsections (a) and (b) of Section 201
19
of the Illinois Income Tax Act. Upon receipt of such
20
certification, the Treasurer shall transfer from the General
21
Revenue Fund to a special fund in the State treasury, to be
22
known as the "Local Government Distributive Fund", the amount
23
shown on such certification.
24

Beginning on the effective date of this amendatory Act of
25
the 98th General Assembly, the Comptroller shall perform the
26
transfers required by this Section no later than 60 days after

HB2686
- 6 -
LRB104 03444 HLH 13467 b
1
he or she receives the certification from the Treasurer.
2

This Section constitutes an irrevocable and continuing
3
appropriation of all

All
amounts
that are
paid into the Local
4
Government Distributive Fund in accordance with this Section
5
or from any other other source
and
that are
allocated pursuant
6
to this Act
are appropriated on a continuing basis
.
The State
7
Treasurer and State Comptroller are hereby authorized to make
8
distributions as provided in this Act.

9
(Source: P.A. 98-1052, eff. 8-26-14.)

10

(30 ILCS 115/2)

(from Ch. 85, par. 612)
11

Sec. 2.
Allocation and Disbursement.

12

(a) As soon as may be after the first day of each month,
13
the Department of Revenue shall allocate among the several
14
municipalities and counties of this State the amount available
15
in the Local Government Distributive Fund and in the Income
16
Tax Surcharge Local Government Distributive Fund, determined
17
as provided in Sections 1 and 1a above. Except as provided in
18
Sections 13 and 13.1 of this Act, the Department shall then
19
certify such allocations to the State Comptroller, who shall
20
pay over to the several municipalities and counties the
21
respective amounts allocated to them. The amount of such Funds
22
allocable to each such municipality and county shall be in
23
proportion to the number of individual residents of such
24
municipality or county to the total population of the State,
25
determined in each case on the basis of the latest census of

HB2686
- 7 -
LRB104 03444 HLH 13467 b
1
the State, municipality or county conducted by the Federal
2
government and certified by the Secretary of State and for
3
annexations to municipalities, the latest Federal, State or
4
municipal census of the annexed area which has been certified
5
by the Department of Revenue. Allocations to the City of
6
Chicago under this Section are subject to Section 6 of the
7
Hotel Operators' Occupation Tax Act. For the purpose of this
8
Section, the number of individual residents of a county shall
9
be reduced by the number of individuals residing therein in
10
municipalities, but the number of individual residents of the
11
State, county and municipality shall reflect the latest census
12
of any of them.
The amounts transferred into the Local
13
Government Distributive Fund pursuant to Section 9 of the Use
14
Tax Act, Section 9 of the Service Use Tax Act, Section 9 of the
15
Service Occupation Tax Act, and Section 3 of the Retailers'
16
Occupation Tax Act, each as now or hereafter amended, pursuant
17
to the amendments of such Sections by Public Act 85-1135,
18
shall be distributed as provided in said Sections.
19

(b) It is the intent of the General Assembly that
20
allocations made under this Section shall be made in a fair and
21
equitable manner. Accordingly, the clerk of any municipality
22
to which territory has been annexed, or from which territory
23
has been disconnected, shall notify the Department of Revenue
24
in writing of that annexation or disconnection and shall (1)
25
state the number of residents within the territory that was
26
annexed or disconnected, based on the last census conducted by

HB2686
- 8 -
LRB104 03444 HLH 13467 b
1
the federal, State, or municipal government and certified by
2
the Illinois Secretary of State, and (2) furnish therewith a
3
certified copy of the plat of annexation or, in the case of
4
disconnection, the ordinance, final judgment, or resolution of
5
disconnection together with an accurate depiction of the
6
territory disconnected. The county in which the annexed or
7
disconnected territory is located shall verify that the number
8
of residents stated on the written notice that is to be sent to
9
the Department of Revenue is true and accurate. The verified
10
statement of the county shall accompany the written notice.
11
However, if the county does not respond to the municipality's
12
request for verification within 30 days, this verification
13
requirement shall be waived. The written notice shall be
14
provided to the Department of Revenue (1) within 30 days after
15
the effective date of this amendatory Act of the 96th General
16
Assembly for disconnections occurring after January 1, 2007
17
and before the effective date of this amendatory Act of the
18
96th General Assembly or (2) within 30 days after the
19
annexation or disconnection for annexations or disconnections
20
occurring on or after the effective date of this amendatory
21
Act of the 96th General Assembly. For purposes of this
22
Section, a disconnection or annexation through court order is
23
deemed to be effective 30 days after the entry of a final
24
judgment order, unless stayed pending appeal. Thereafter, the
25
monthly allocation made to the municipality and to any other
26
municipality or county affected by the annexation or

HB2686
- 9 -
LRB104 03444 HLH 13467 b
1
disconnection shall be adjusted in accordance with this
2
Section to reflect the change in residency of the residents of
3
the territory that was annexed or disconnected. The adjustment
4
shall be made no later than 30 days after the Department of
5
Revenue's receipt of the written notice of annexation or
6
disconnection described in this Section.
7
(Source: P.A. 96-1040, eff. 7-14-10.)

8

Section 99.
Effective date.
This Act takes effect upon
9
becoming law.

Footer

Disclaimer

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.

Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.
Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn