Economic Outlook And Revenue Forecast
State of Illinois
Estate Tax
Estate Tax (Inheritance)
($ millions)
Overview: The Illinois Estate Tax was repealed for people
dying in calendar year 2010. The tax was then reinstated for
people dying on or after January 1, 2011.
Public Act 97-0636, enacted on December 16, 2011, increased
the estate tax exemption from $2 million for people dying
prior to January 1, 2012, to $3.5 million for people dying on or
after January 1, 2012, but prior to January 1, 2013. The
exemption increases to $4 million for people dying on or after
January 1, 2013.
Tax receipts are deposited into the General Revenue Fund. Six
percent of net revenue realized from the Illinois Estate Tax
during the preceding month is then transferred from the
General Revenue Fund to the Estate Tax Collection Distributive
Fund. The revenue in this fund is then distributed to the
county of residence of the decedent.
FY09 FY10 FY11
FY12
Estimate
FY13 Forecast
Revenue $288 $243 $122 $215 $242
Key Assumptions: FY12 estate tax receipts will not be
impacted by the $3.5 million exemption that applies to people
dying on or after January 1, 2012. There is a 10 month lag
between when a person dies, and when taxes are received by
the state. The $3.5 million exemption will reduce FY13 estate
tax receipts from November 2012 thru June 2013.
The value of each estate is reduced by an
exemption amount in determining the taxable
portion of the estate. Due to a 10 month lag, fiscal
year 2012 estate tax receipts will not be impacted
by the $3.5 million exemption that applies to
people dying on or after January 1, 2012.
The Estate Tax is due 9 months after the date of
death, and paid to the County Treasurer of the
county in which the decedent resided. The County
Treasurer then remits the tax the following month
to the state. Hence, there is a 10 month lag
between the death of the decedent and, when the
state receives the tax. If the federal tax is paid in
installments, then the Illinois tax may also be paid
in installments.
Fiscal year 2012 estate tax receipts are estimated
at $215 million. As expected, estate tax receipts
increased significantly starting in November 2011
due to the tax being reinstated for people dying on
or after January 1, 2011. Estate tax receipts for
November 2011 through January 2012 were robust.
Fiscal year 2013 estate tax receipts are estimated
at $242 million. The $3.5 million exemption
effective January 1, 2012, will begin reducing fiscal
year 2013 receipts in November 2012.
Liquor Taxes
Liquor Taxes
($ millions)
Overview: Businesses that make or distribute alcoholic
beverages within Illinois pay liquor taxes based on the volume
and alcohol content of these beverages. Liquor taxes include
assessments of 18.5 cents per gallon of beer or cider,
73 cents per gallon of wine, and $4.50 per gallon of hard
liquor. Additional state liquor tax rates apply, but revenue
from these additional rates are earmarked for capital projects
and are not included in the forecast totals or discussion
below.
FY09 FY10 FY11
FY12
Estimate
FY13
Forecast
General
Fund
Revenue
$158 $159 $157 $162 $163
Alcohol consumption is relatively unresponsive to
the business cycle, making a liquor tax a stable
source of revenue. Looking at the revenue
composition by type of alcohol in fiscal year 2011,
hard liquor generated 53 percent of liquor tax
receipts, beer and cider together generated 32
percent, and wine generated 15 percent. Liquor tax
receipts for fiscal year 2012 are estimated at $162
million. The forecast for fiscal year 2013 is $163
million.
Executive Budget for Fiscal Year 2013 Chapter 3 - 15
