SB2334 Summary

• Modifies the State Revenue Sharing Act to require the Department of Revenue to deposit income tax payments directly into the Local Government Distributive Fund beginning January 1, 2014, rather than depositing into the General Revenue Fund first and having the Treasurer transfer funds later.

• Changes the Illinois Income Tax Act to include appropriations from the Local Government Distributive Fund in the definition of "State spending" for purposes of the state spending limitation established in Section 201.5.

• Establishes specific deposit percentages for the Local Government Distributive Fund based on income tax collections from individuals, trusts, estates, and corporations through December 31, 2025, with varying rates for different time periods (6% for individuals and 6.86% for corporations from January 1, 2014 through December 31, 2014, increasing to 8% and 9.14% respectively from January 1, 2015 through December 31, 2025).

• Takes effect immediately upon becoming law.