Fiscal Focus

              Cover Story ..........................front cover, 3-7
Letter From The Comptroller .................... 2
Exploring the Gross
Receipts Tax.................................... 2, 10, 11
Tax Burdens in Other States..................... 8
Growth in Corporate
Income Tax Receipts.................................. 9
Tax Breaks Reduce
Tax Liabilities....................................... 12-13
The Streamlined Sales
Tax Initiative in Illinois.........................14-15
A Comparison of State Income,
Sales and Gasoline Taxes ....................... 15
A Snapshot of Public Utility Taxes......... 16
Revenues from “Sin”
Taxes Increase.................................... 17, 21
What Share of Corporate
Income Is Taxable in Illinois?.................. 18
Property Tax Burdens
Vary Considerably.............................. 19, 21
Personal Property
Replacement Tax ...................................... 20
Fiscal Year 2006 Fee
Imposition Report Issued........................ 20
March 2007 Tables.................................... 22
April 2007 Tables ...................................... 23
Publication Request Form..........back cover
In This Issue:
In the last few months, millions of Illi-noisans
have filed their state income tax
returns either via the internet or through the
submission of a paper return. Aside from
this time of year, taxpayers may not consid-er
the total revenues collected by the state or
how this tax base has kept up with the
growth in the state’s economy. However,
year-round there is a steady stream of rev-enues
coming into state coffers, providing
funding for critical areas of state spending
such as education, health care, and public
safety.
This spring, the focus on the state’s overall
revenue picture has been sharpened with the
Governor’s fiscal year 2008 budget propos-al
that includes a new tax on businesses’
gross receipts (see the article on page 2) and
a payroll tax to subsidize the expansion of
the state’s health care and elementary/sec-ondary
educational system. Any meaningful
discussion of these proposed taxes cannot be
undertaken without an understanding of the
state’s current tax system and the changes
that have been made to state revenues over
the last few decades.
Overview of Major Revenue
Sources
The State of Illinois imposes taxes and gen-erates
revenues from a variety of sources.
The major revenue sources for the state’s
General Funds (the collective name for four
funds that support the state’s major opera-
• MAY 2007 ISSUE •
Growth in State Tax Revenues
A Publication of the Illinois State Comptroller
Fiscal Focus
Cover Story continued, page 3
All
General % of Appropriated % of
Funds Total Funds Total
Individual Income Tax $ 8 ,635 31.6% $ 9,568 18.4%
Sales Taxes 7 ,092 25.9% 8,425 16.2%
Federal Sources 4 ,725 17.3% 12,366 23.8%
Corporate Income Tax 1 ,428 5.2% 1,784 3.4%
Public Utility Taxes 1 ,074 3.9% 1,595 3.1%
Other Transfers In 7 46 2.7% 250 0.5%
Riverboat Gaming 6 89 2.5% 817 1.6%
Lottery Tickets & Licenses 6 70 2.4% 984 1.9%
Other taxes, fees, etc 4 32 1.6% 7,155 13.7%
Cigarette Taxes 4 00 1.5% 640 1.2%
County Intergovernmental Transfers 3 50 1.3% 421 0.8%
Insurance Tax & Fees 3 17 1.2% 393 0.8%
Inheritance Tax (gross) 2 72 1.0% 272 0.5%
Corporate Franchise Taxes & Fees 1 81 0.7% 189 0.4%
Investment Income 1 53 0.6% 261 0.5%
Liquor Gallonage Taxes 1 52 0.6% 152 0.3%
Hotel Tax 3 8 0.1% 1 81 0.3%
Motor Vehicle & Operators Licenses 5 0.0% 1,296 2.5%
Motor Fuel Tax - 0.0% 1 ,477 2.8%
Corporate Personal Property Replacement Tax - 0.0% 1 ,442 2.8%
Healthcare Provider Assessment Fees & Taxes - 0.0% 890 1.7%
Sale of Bonds - 0.0% 1 ,484 2.9%
Total $ 2 7,359 100.0% $ 5 2,042 100.0%
Source: Comptroller's records.
Major Illinois Revenue Sources
Fiscal Year 2006
$ in millions