HB4932 Summary

• Creates a variable income tax rate mechanism beginning January 1, 2023, that adjusts the individual income tax rate annually based on state budget needs, population growth, and inflation, with a cap of 4.95%.

• The tax rate for individuals, trusts, and estates shall be the lesser of 4.95% or a percentage calculated by an algorithm comparing estimated state budget obligations (adjusted for population and inflation) against estimated tax revenues and other state income sources.

• The Department of Revenue must calculate and publish the adjusted tax rate between September 1-30 each year for use in the following calendar year.

• For corporations beginning January 1, 2023, establishes a rate equal to 140% of the individual tax rate determined under the algorithm.

• Amends the Illinois Administrative Procedure Act to authorize emergency rulemaking by the Department of Revenue to implement this variable rate system, with this authorization repealing one year after the law's effective date.