Skip to main content
 
 
 
 
Taxpayer Answer Center

Quick Links

Information For

About IDOR

Got Questions?

What is the "replacement tax," and why is it called that?

Answer #82 -- ( Published 08/04/2005 12:31 PM | Updated 07/12/2017 10:38 AM )

What is the "replacement tax," and why is it called that?

The replacement taxes are revenues received from corporations (including S corporations), partnerships and trusts, collected by the state of Illinois and paid to local governments. Prior to 1979, business entities were required to pay personal property taxes. Legislation then abolished the personal property taxes. To replace the money lost by units of local government and school districts, the replacement tax was enacted. For more information regarding the replacement tax, see Illinois Income Tax Act, Sections 201(c) and (d), and Replacement Taxes.

Answers others found helpful


Submit a question

:
:

: