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HB 2903

Relating to adjustment of classification of management service employees during an economic emergency.

2025 Regular Session Introduced by Paul Evans

HB 2903 directs 75% of certain Illinois tax receipts to General Revenue and 25% to the Common School Fund, and caps retailer collection allowances at $1,000 per month.

In committee upon adjournment.
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Bill Summary · HB 2903

HB 2903 — Summary (Use/Occ Tax — Common School Fund)

Status: Rule 19(a) / Re-referred to Rules Committee (last action 2025-04-11)
Introduced: Feb 18, 2025 (Rep. Fred Crespo) — Effective immediately if enacted

Purpose / Intent

HB 2903 revises how certain state sales- and use-tax receipts are allocated between the General Revenue Fund and the Common School Fund, and places an aggregate cap on the collection allowance (discount) retailers may keep when remitting several state tax types administered by the Illinois Department of Revenue.

Key provisions

  • Revenue allocation change

    • Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act.
    • For the remainder of moneys received under those Acts after specified deposits, the bill directs that 75% be deposited into the General Revenue Fund and 25% be deposited into the Common School Fund.
    • This replaces the current mechanic that directs 75% to the State Treasury and 25% to a special reserve account used only for monthly transfers to the Common School Fund—effectively directing the 25% share into the Common School Fund under the new statutory language.

  • Retailer collection allowance (discount) cap

    • Beginning with returns due on or after Jan 1, 2025, the discount(s) retailers are allowed across the listed tax Acts (including any local tax administered and reported on the same return) shall not exceed $1,000 per month in the aggregate for periodic returns.
    • For retailers remitting on a transaction-by-transaction basis, the aggregate cap is also $1,000 per month for all transaction returns filed during the month.
    • The provision includes clarifying rules about how amounts subject to certain reduced rates (e.g., sales tax holiday provisions in Public Act 102‑700) are treated when calculating the discount and excludes the 1.25% portion of aviation fuel taxes that are subject to federal revenue-use requirements from the discount.

  • Other statutory clarifications retained

    • The bill leaves existing electronic filing and return timing rules largely intact (as in the current Use Tax Act text excerpt), but the principal substantive edits are allocation and discount-cap changes.

Who or what is affected

  • Retailers and service providers who collect and remit Illinois sales/use and related service taxes (they may receive a reduced collection allowance if their aggregate discounts would have exceeded $1,000/month).
  • Illinois Department of Revenue (administration and accounting of deposits/transfers).
  • State funds: General Revenue Fund and Common School Fund (changes to deposit flow and statutory routing).
  • Potential indirect impacts on local governments are limited because the change addresses state-administered taxes and how the state deposits the remainder of those receipts.

Potential fiscal and operational impact

  • By capping retailer discounts at $1,000/month, the State may retain more tax receipts that previously would have been kept by large remitting retailers as collection allowances—producing modest additional net revenue to state funds.
  • Changing the statutory routing to deposit 25% directly into the Common School Fund (rather than into a reserved account used for monthly transfers) may simplify accounting and affect the timing/visibility of transfers to schools. The net split (75% / 25%) remains the same in statute, but administrative effects could alter cash flow/timing.

Legislative status & timeline (selected)

  • Filed: 2025-02-05 / First Reading: 2025-02-06
  • Committee referrals: Rules; Revenue & Finance; Tax Policy subcommittee (Other Taxes)
  • Reported from Revenue & Finance (Do Pass): 2025-03-20
  • Readings on House calendar and reassigned: second reading actions in Feb–Mar 2025
  • Last recorded: Rule 19(a) / Re‑referred to Rules Committee (2025-04-11)

Sponsors / Cosponsors

Primary: Rep. Fred Crespo, Rep. Lorena Austin
Cosponsors include Quantá Crews, Anna Abeytia, Junelle Cavero, Camille Y. Lilly

(References: Amends 35 ILCS 105/9; 35 ILCS 110/9; 35 ILCS 115/9; 35 ILCS 120/3.)

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

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