HB5598 Summary

• Creates the Tax Compliance and Administration Fund as a special fund in the State treasury to reimburse the Department of Revenue for costs of collecting, administering, and enforcing tax laws, including payments from units of local government for administering local taxes under the Local Tax Collection Act.

• Requires the Director of Revenue to certify the fund balance annually as of July 1, and directs any amount exceeding $2,500,000 to be transferred to the General Revenue Fund.

• Expands the Local Tax Collection Act to apply to any "unit of local government" rather than just counties and municipalities, and allows the Department to collect local taxes substantively identical to state taxes.

• Modifies payment procedures for local tax collections to retain 2% (or a greater amount by agreement) of collected taxes and penalties in the State Treasurer for deposit into the Tax Compliance and Administration Fund rather than the General Revenue Fund.

• Establishes new filing deadlines requiring local tax ordinances to be filed with the Department by April 1st (effective July 1) or October 1st (effective January 1) for the Department to administer rate changes or tax impositions.