Illinois taxpayers might receive state income tax refunds more quickly as a result of legislation signed into law earlier this month by Gov. James Thompson.

“The issue originally came about as a result of the slow payment of refunds in 1987,” said Jennifer Gordon from the Illinois Department of Revenue. “Last July and August, state representatives were being called about refunds. People were saying that they filed back in January and still hadn‘t received refunds,” said Rep. Jeffery Mays, R-Quincy, who was the co-sponsor of the bill.

The new law will create a permanent fund in the state treasury from which refunds will be paid regularly. “As soon as the money comes in, a certain percentage will be taken off the top and be put into the fund, said Gordon.

The specific purpose of the fund is to set money aside for payment of income tax refunds. “Before, the money was being cashflowed,” said Mays. “We shouldn’t have been appropriating tax dollars for other purposes. After all, it was the tax payers’ dollars in the first place. We were one of the only states who did this, and it was time to do something about it,” he said.

The fund is expected to take refunds out of the annual budget process by eliminating or greatly reducing the need for General Assembly appropriations. It also is expected to give refunds a higher priority in the administration.

To create the fund, 6 percent of individual income taxes and 18 percent of corporate income taxes will be diverted for six months beginning Jan. 1, 1990. Afterward, the amount channeled to the fund will be based on the past year’s refunds and estimates of future tax collections.

When the law takes effect, there should be a “significant” difference in the time it takes to receive refunds. “When the refund is incurred, we should have immediate turnaround-about a week,” Mays said.