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Fiscal Year 2021 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 ("PPRT")** for Fiscal Year 2021.

The Fiscal Year 2021 PPRT allocations are estimated at $1,200 million. This is a decrease of 17.4% from Fiscal Year 2020 PPRT allocations that totaled $1,453 million.

PPRT allocations are estimated to be lower for several reasons:

  • The largest contributing factor to the decrease is the economic slowdown caused by COVID-19.  All else being equal, the economic conditions are expected to reduce year-over-year PPRT deposits by 22%.
  • There will be a transfer from the Personal Property Replacement Tax Fund to the Income Tax Refund Fund in September 2020 of approximately $89 million. This statutory transfer is because the money paid out for PPRT refunds in FY 2020 exceeded estimated deposits into the Income Tax Refund Fund.
  • Deposits into the Personal Property Replacement Tax Fund last year received a boost from amnesty payments in October and November, which will not happen again this year.
  • The year-over-year decline will be somewhat softened by the April filing and payment deadline extension for corporations and fiduciaries. An estimated $120 million was deposited into the Personal Property Replacement Tax Fund in July (FY 2021) that would have otherwise been deposited in April (FY 2020).

A detailed listing of the approximate 6,500 local taxing districts which are entitled to receive an allocation for Fiscal Year 2021 (July 1, 2020 through June 30, 2021) is available here. The list contains the following information:

  • District name
  • District number
  • FY 2021 estimated amount
  • FY 2020 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.

** "Personal Property 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.