IL SB3780

Increases the monthly transfer from the General Revenue Fund to the Local Government Distributive Fund (LGDF) to 10% of net state income tax revenue, effective August 1, 2026.

Replaces the current formula that uses different percentages for different tax types: 6.47% for individual/trust/estate income taxes, 6.85% for corporate income taxes, and 6.47% for pass-through entity taxes.

Simplifies the calculation by applying a single 10% rate to all net income tax revenue collected during the preceding month.

Amends Section 901 of the Illinois Income Tax Act (35 ILCS 5/901) governing collection authority and fund distributions.

Introduced by Senator Donald P. DeWitte on February 5, 2026, with immediate effective date upon passage.