HB5097 Summary

• Amends the Illinois Income Tax Act to modify distributions to the Local Government Distributive Fund if income tax rates are reduced under Section 201.5 of the Act.

• When a tax rate reduction occurs due to the state exceeding the spending limit, the State Treasurer must transfer 1/10 of net income tax revenue collected each month to the Local Government Distributive Fund beginning with the first distribution after the rate reduction becomes effective.

• This 1/10 transfer requirement supersedes any other percentage-based distribution formulas that would otherwise apply during the period following a rate reduction.

• The bill takes effect immediately upon becoming law.