Fiscal Year 2018 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 2018.

The FY18 replacement tax allocations are estimated at $1,117 million. This is a decline of 23.84% from FY17 replacement tax allocations that totaled $1,467 million.

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

  • Replacement tax revenues are expected to decrease by approximately 2% due to weak domestic profits suppressing replacement tax receipts.
  • The reconciliation of the tax year 2015 and 2016 returns involved with the tax calculation split was completed last year which resulted in additional monies of $235.6 million being deposited into the PPRT fund during FY-17. The income tax/replacement tax deposit percentages have been adjusted for FY-18, therefore no additional monies have been built into this estimate for FY-18.
  • The statutory refund fund transfer to the PPRT fund is $10.1 million because more replacement tax refunds were paid in FY-17, whereas last year’s transfer amount was $63 million.
  • The business income tax refund fund percentage has increased from 17.25% in FY17 to 17.5% in FY18.
  • Public Act 100-0021 authorized $297 million in expenditures out of the PPRT fund for FY-18.

A detailed listing of the approximate 6,500 local taxing districts which are entitled to receive an allocation for Fiscal Year 2018 (July 1, 2017 through June 30, 2018) is available here. The list contains the following information:

  • District name
  • District number
  • FY 2018 estimated amount
  • FY 2017 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.