Fiscal Year 2022 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 2022.
The Fiscal Year 2022 PPRT allocations are estimated at $2,107 million. This is an increase of 14.3% from Fiscal Year 2021 PPRT allocations that totaled $1,843 million.
PPRT allocations are estimated to be higher for several reasons:
- Legislative changes affecting corporate taxpayers and continued improvement of economic conditions are expected to translate into strong deposits into the PPRT fund for FY 2022.
- There will be a transfer from the Income Tax Refund Fund to the Personal Property Tax Fund in September 2021 of approximately $121 million. This statutory transfer is because the estimated deposits into the Income Tax Refund Fund exceeded the money paid out for PPRT refunds in FY 2021.
- The annual business income tax reconciliation of tax payments and returns will result in a transfer of approximately $66 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. This is a significant increase compared to last year's reconciliation, resulting in an additional $23.3 million in the PPRT fund.
- The anticipated year-over-year increase will be offset slightly due to the April 2020 payment deadline extension, which artificially increased FY 2021 deposits into the PPRT fund by approximately $120 million. No such extension was available to taxpayers in April 2021.
- The pandemic significantly affected cashflow patterns for FY 2021; accordingly, year-over-year comparisons will be distorted.
A detailed listing of the approximate 6,500 local taxing districts which are entitled to receive an allocation for Fiscal Year 2022 (July 1, 2021 through June 30, 2022) is available here. The list contains the following information:
- District name
- District number
- FY 2022 estimated amount
- FY 2021 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 is not 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.