Fiscal Year 2024 Estimate for Replacement Taxes
In accordance with Illinois statute (50 ILCS 420/4.1), the Illinois Department of Revenue is required to provide an estimated entitlement* of the amount of Personal Property Replacement Taxes ("PPRT")** for Fiscal Year 2024.
The Fiscal Year 2024 PPRT allocations are estimated at $3.235 billion. This is a decrease of 28.8% from Fiscal Year 2023 PPRT allocations that totaled $4.541 billion.
PPRT allocations are estimated to be lower for several reasons:
- The annual reconciliation of tax payments and returns will result in a Fiscal Year 2024 transfer of approximately $818.396 million from replacement tax to income tax. This reconciliation is required because tax receipts are disbursed at time of receipt based on a historical estimate and the actual disbursement amounts required by statute are not known until the final returns are received much later. These adjustments will be made in five equal installments effecting the disbursements in October 2023, January 2024, April 2024, May 2024 and July 2024. For more information, see the Personal Property Replacement Tax Allocation Statement.
- Also, a decrease in collections is expected as the $100,000 net operating loss limitation expires. This expiration will result in corporate taxpayers applying larger-than-normal losses against positive income, which will reduce estimated tax collections starting in calendar year 2024 (Public Act 102-0016 (35 ILCS 5/207) (d)).
- Lastly, there will be a transfer from the Income Tax Refund Fund to the Personal Property Tax Fund in September 2023 of approximately $102.607 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 2023. While this transfer is positive to the Personal Property Tax Fund, it is less than the $359 million transferred to the Fund in Fiscal Year 2023.
A detailed listing of the approximate 6,500 local taxing districts which are entitled to receive an allocation for Fiscal Year 2024 (July 1, 2023 through June 30, 2024) is available here. The list contains the following information:
FY 2024 estimated amount
FY 2023 actual disbursement amount
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" – 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.