Fiscal Year 2019 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 2019.

The Fiscal Year 2019 replacement tax allocations are estimated at $1,142 million. This is a decline of 7% from Fiscal Year 2018 replacement tax allocations that totaled $1,227 million.

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

  • Replacement tax revenues are expected to decrease by approximately 2.5%.  Fiscal Year 2018 revenues were higher than originally projected due to some one-time only federal tax changes. 
  • The annual reconciliation of tax payments and returns will result in a Fiscal Year 2019 transfer of approximately $38 million from replacement tax to income 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.  These adjustments will be made in five equal installments effecting the disbursements in October 2018, January 2019, April 2019, May 2019 and July 2019.
  • The statutory refund fund transfer from the Personal Property Replacement Tax Fund to the Refund Fund is $28.7 million because in Fiscal Year 2018 replacement tax refunds paid were more than replacement tax refund revenues.
  • The business income tax refund fund percentage has decreased from 17.5% in Fiscal Year 2018 to 15.5% in Fiscal Year 2019.
  • Public Act 100-0586 authorized $302.4 million in expenditures out of the PPRT fund for Fiscal Year 2019.

The statutory business income tax refund fund percentage has decreased from 17.5% in Fiscal Year 2018 to 15.5% in Fiscal Year 2019 which will result in additional monies being deposited into the replacement tax fund.

A detailed listing of the approximate 6,500 local taxing districts which are entitled to receive an allocation for Fiscal Year 2019 (July 1, 2018 through June 30, 2019) is available here. The list contains the following information:

  • District name
  • District number
  • FY 2019 estimated amount
  • FY 2018 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.