{"id":3892,"date":"2024-01-02T08:53:15","date_gmt":"2024-01-02T14:53:15","guid":{"rendered":"https:\/\/illinoistax.org\/?p=3892"},"modified":"2024-01-12T09:26:46","modified_gmt":"2024-01-12T15:26:46","slug":"2023-year-in-review","status":"publish","type":"post","link":"http:\/\/illinoistax.org\/?p=3892","title":{"rendered":"TFI Tax Facts (77.1): 2023 Year in Review"},"content":{"rendered":"

TFI Tax Facts: 2023 Year in Review<\/u><\/strong><\/h3>\n

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January 2024 (77.1)<\/strong><\/p>\n

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The General Assembly had a \u201ctypical\u201d session in 2023, the first since 2019. Even though revenues were strong once again in FY2023, the General Assembly put together the FY2024 budget with a conservative revenue estimate. Similar to last year, tax issues were not a focus of the session, primarily because of the revenue strength. However, there were still numerous tax bills introduced, and a fair number that passed, although the tax bills that did pass generally focused on a very specific area of the law. The following discussion covers each of the tax-related bills that became law in 2023.<\/p>\n

FY2024 Budget
\n<\/strong>This year\u2019s budget bill, P.A. 103-0006<\/span><\/a>, appropriates $50.428 billion from the General Revenue Fund for FY2024, an increase of $1.378 billion from FY2023. The General Assembly projected GRF revenues of $50.611 billion, for a surplus of $183 million. Of the $183 million surplus, $138 million will be deposited into the \u201crainy day\u201d fund. The FY2024 revenue projection is $2.523 billion lower than the actual FY2023 revenues, due mainly to the State not expecting one time transfers from the federal government related to the COVID-19.<\/p>\n

Budget Implementation Bill
\n<\/strong>P.A. 103-0008<\/a><\/span> is the Budget Implementation Bill for FY2024, and as is often the case, it contained a few tax-related items. Most notably, it increases the franchise tax credit from $1,000 to $5,000 starting in 2024. It increases income tax deposits to LGDF to 6.47% of individual income tax revenues (up from 6.16%). The individual income tax refund diversion rate is lowered from 9.25% to 9.15% and the corporate income tax diversion rate is reduced from 14.5% to 14%.<\/p>\n

Omnibus Tax Bill
\n<\/strong>P.A. 103-0009<\/span><\/a> is an income and sales tax omnibus bill. The bill makes the following changes:<\/p>\n