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HB 3022

LIQUOR CONTROL-PROCEEDS

104th Regular Session Introduced by Will Guzzardi

Diverts 43% of liquor tax receipts to the Capital Projects Fund and 57% to General Revenue starting July 1, 2025; tax rates stay the same.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 3022

Summary — HB 3022 (Liquor Control — Proceeds)

Overview / Purpose

HB 3022 amends Section 8-1 of the Liquor Control Act of 1934 to change how the proceeds of the State liquor excise tax are deposited. Its stated effect is to allocate a fixed share of liquor tax revenue to the Capital Projects Fund beginning July 1, 2025, with the remainder to the General Revenue Fund. The bill was introduced by Rep. Will Guzzardi.

Key provisions

  • Beginning July 1, 2025, proceeds from the tax imposed under the Liquor Control Act (235 ILCS 5/8‑1) shall be deposited as follows:
    • 43% to the Capital Projects Fund; and
    • 57% to the General Revenue Fund.
  • The bill does not change the statutory liquor tax rates; it only changes the allocation (deposit) of proceeds.
  • The bill text also states it is "effective immediately." (Practically, the allocation schedule is specified to begin July 1, 2025; the bill becoming law immediately would allow administration/preparation prior to that date.)

Who or what would be affected

  • Primary effect is on state finances: the Capital Projects Fund and the General Revenue Fund.
  • The Illinois Department of Revenue will administer the altered deposit allocation.
  • Businesses subject to the liquor tax (manufacturers, importing distributors, retailers) are not subject to a change in tax rates or new taxes by this bill; their compliance obligations remain unchanged.
  • Recipients of General Revenue Fund-supported services could see reduced GRF resources relative to a pre-allocation baseline if the GRF previously received a larger share (or all) of these proceeds.

Fiscal/policy implications

  • The bill diverts 43% of liquor tax receipts to capital projects (infrastructure, buildings, etc.), potentially increasing dedicated capital funding.
  • This diversion reduces the portion of liquor tax revenue flowing into the unrestricted General Revenue Fund by a corresponding amount, which could affect funding for programs financed from GRF unless offset by other revenues or appropriations changes.
  • The actual net fiscal impact depends on baseline deposit practices (how proceeds were allocated immediately before July 1, 2025) and annual liquor tax receipts. A formal fiscal note from the state would quantify dollars affected.

Timeline & legislative status

  • Introduced Feb 6, 2025 (filed Feb 19, 2025 per summary header).
  • Committee activity: referred to committees, reported favorably without amendment, hearings and subcommittee actions March–April 2025.
  • Rule 19(a) / Re‑referred to Rules Committee on April 11, 2025.
  • Considered on Calendars May 9, 2025.
  • If enacted, allocation change takes effect on July 1, 2025; the Act itself is designated as effective immediately.

Sponsor and related legislation

  • Primary sponsor: Rep. Will Guzzardi.
  • Companion bill: SB 1433.

What to watch: any fiscal notes from the Commission on Government Forecasting & Accountability (or the Governor's office), amendments altering the percent split or effective date, and action in the Senate or final concurrence votes.

Compiled from official sources — confirm details with the bill’s official record.

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