SB3086 Summary

• Amends Section 901 of the Illinois Income Tax Act to change the Local Government Distributive Fund transfer formula beginning August 1, 2020.

• Changes the transfer amount from a complex formula based on individual (6.06%) and corporate (6.85%) income tax rates to a simplified 10% of net revenue realized from income tax during the preceding month.

• Eliminates the previous formula scheduled to take effect February 1, 2021, which would have reduced individual transfers to 5.32% and corporate transfers to 6.16%.

• Maintains existing reductions for State fiscal year 2020, with total revenue and deposits reduced by 5%.

• Effective immediately upon becoming law.