Fiscal Year 2020 Estimate for Replacement Taxes

In accordance with current statute, the Illinois Department of Revenue is required to provide an estimated entitlement* of the amount of Personal Property Replacement Taxes for Fiscal Year 2020.

The Fiscal Year 2020 replacement tax allocations are estimated at $1,537 million. This is an increase of 15.4% from Fiscal Year 2019 replacement tax allocations that totaled $1,332 million.

Replacement tax allocations are estimated to be higher for several reasons:

  • The annual reconciliation of tax payments and returns will result in a Fiscal Year 2020 transfer of approximately $32 million from corporate income tax to replacement tax. This reconciliation is needed because monies are disbursed based on a historical estimate and the actual tax-split calculation is not known until the returns are received much later.

  • There will be a transfer from the Income Tax Refund Fund to the Personal Property Replacement Tax Fund in September 2019 of approximately $95.8 million. This statutory transfer results from estimated deposits into the Income Tax Refund Fund exceeding the amount of money paid out for Replacement Tax refunds in FY 2019.

  • Public Act 101-0009 included a decoupling of IRC Section 250, which was passed as part of the federal Tax Cuts and Jobs Act with the intent of providing domestic corporations with a reduced federal tax rate on their foreign derived intangible income. The decoupling works as an addition modification, which will have the effect of increasing Illinois net income.

A detailed listing of the approximate 6,500 local taxing districts which are entitled to receive an allocation for Fiscal Year 2020 (July 1, 2019 through June 30, 2020) is available here. The list contains the following information:

  • District name
  • District number
  • FY 2020 estimated amount
  • FY 2019 actual disbursement amount
  • Vendor number

This information may be considered certified by the Director of the Illinois Department of Revenue solely for purposes of allowing local taxing districts to issue tax anticipation notes, in accordance with 50 ILCS 420/1 et seq., Tax Anticipation Note Act.

These numbers represent an ESTIMATE based on the best available economic data. The actual amount a local government will receive may vary. Please note that the Illinois Department of Revenue and staff shall in no way be liable for error or miscalculation in certification of entitlements.

* Entitlement - the amount of the Replacement Tax paid or to be paid in any given full year to a unit of government.
** "Replacement taxes” – are the tax or taxes, as by law now or hereafter enacted or amended, imposed by the General Assembly to replace revenue lost by units of government as a result of the abolition of ad valorem personal property taxes pursuant to Article IX, Section 5(c) of the Constitution of the State of Illinois.