Bill Text: IL HB5001 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Business Corporation Act of 1983. Provides that, on or after January 1, 2025 and prior to January 1, 2026, the first $10,000 in liability is exempt from the franchise tax payable by domestic corporations. On or after January 1, 2026 and prior to January 1, 2027, the first $100,000 in liability is exempt from the franchise tax payable by domestic corporations. Provides that, in the case of a domestic corporation, no payment is required for a franchise tax that would have been due and payable on or after January 1, 2027. Repeals the provision concerning franchise taxes payable by domestic corporations on January 1, 2028. Effective immediately.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced) 2024-02-22 - Added Co-Sponsor Rep. Tony M. McCombie [HB5001 Detail]
Download: Illinois-2023-HB5001-Introduced.html
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1 | AN ACT concerning business.
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2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Business Corporation Act of 1983 is amended | |||||||||||||||||||
5 | by changing Section 15.35 as follows:
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6 | (805 ILCS 5/15.35) (from Ch. 32, par. 15.35) | |||||||||||||||||||
7 | (Text of Section from P.A. 102-16 and 103-8) | |||||||||||||||||||
8 | Sec. 15.35. Franchise taxes payable by domestic | |||||||||||||||||||
9 | corporations. For the privilege of exercising its franchises | |||||||||||||||||||
10 | in this State, each domestic corporation shall pay to the | |||||||||||||||||||
11 | Secretary of State the following franchise taxes, computed on | |||||||||||||||||||
12 | the basis, at the rates and for the periods prescribed in this | |||||||||||||||||||
13 | Act: | |||||||||||||||||||
14 | (a) An initial franchise tax at the time of filing its | |||||||||||||||||||
15 | first report of issuance of shares. | |||||||||||||||||||
16 | (b) An additional franchise tax at the time of filing | |||||||||||||||||||
17 | (1) a report of the issuance of additional shares, or (2) a | |||||||||||||||||||
18 | report of an increase in paid-in capital without the | |||||||||||||||||||
19 | issuance of shares, or (3) an amendment to the articles of | |||||||||||||||||||
20 | incorporation or a report of cumulative changes in paid-in | |||||||||||||||||||
21 | capital, whenever any amendment or such report discloses | |||||||||||||||||||
22 | an increase in its paid-in capital over the amount thereof | |||||||||||||||||||
23 | last reported in any document, other than an annual |
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1 | report, interim annual report or final transition annual | ||||||
2 | report required by this Act to be filed in the office of | ||||||
3 | the Secretary of State. | ||||||
4 | (c) An additional franchise tax at the time of filing | ||||||
5 | a report of paid-in capital following a statutory merger | ||||||
6 | or consolidation, which discloses that the paid-in capital | ||||||
7 | of the surviving or new corporation immediately after the | ||||||
8 | merger or consolidation is greater than the sum of the | ||||||
9 | paid-in capital of all of the merged or consolidated | ||||||
10 | corporations as last reported by them in any documents, | ||||||
11 | other than annual reports, required by this Act to be | ||||||
12 | filed in the office of the Secretary of State; and in | ||||||
13 | addition, the surviving or new corporation shall be liable | ||||||
14 | for a further additional franchise tax on the paid-in | ||||||
15 | capital of each of the merged or consolidated corporations | ||||||
16 | as last reported by them in any document, other than an | ||||||
17 | annual report, required by this Act to be filed with the | ||||||
18 | Secretary of State from their taxable year end to the next | ||||||
19 | succeeding anniversary month or, in the case of a | ||||||
20 | corporation which has established an extended filing | ||||||
21 | month, the extended filing month of the surviving or new | ||||||
22 | corporation; however if the taxable year ends within the | ||||||
23 | 2-month period immediately preceding the anniversary month | ||||||
24 | or, in the case of a corporation which has established an | ||||||
25 | extended filing month, the extended filing month of the | ||||||
26 | surviving or new corporation the tax will be computed to |
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1 | the anniversary month or, in the case of a corporation | ||||||
2 | which has established an extended filing month, the | ||||||
3 | extended filing month of the surviving or new corporation | ||||||
4 | in the next succeeding calendar year. | ||||||
5 | (d) An annual franchise tax payable each year with the | ||||||
6 | annual report which the corporation is required by this | ||||||
7 | Act to file. | ||||||
8 | On or after January 1, 2020 and prior to January 1, 2021, | ||||||
9 | the first $30 in liability is exempt from the tax imposed under | ||||||
10 | this Section. On or after January 1, 2021, and prior to January | ||||||
11 | 1, 2024, the first $1,000 in liability is exempt from the tax | ||||||
12 | imposed under this Section. On or after January 1, 2024 and | ||||||
13 | prior to January 1, 2025 , the first $5,000 in liability is | ||||||
14 | exempt from the tax imposed under this Section. On or after | ||||||
15 | January 1, 2025 and prior to January 1, 2026, the first $10,000 | ||||||
16 | in liability is exempt from the tax imposed under this | ||||||
17 | Section. On or after January 1, 2026 and prior to January 1, | ||||||
18 | 2027, the first $100,000 in liability is exempt from the tax | ||||||
19 | imposed under this Section. The provisions of this Section | ||||||
20 | shall not require the payment of any franchise tax that would | ||||||
21 | otherwise have been due and payable on or after January 1, | ||||||
22 | 2027. There shall be no refunds or proration of franchise tax | ||||||
23 | for any taxes due and payable on or after January 1, 2027 on | ||||||
24 | the basis that a portion of the corporation's taxable year | ||||||
25 | extends beyond January 1, 2027. | ||||||
26 | This Section is repealed on January 1, 2028. |
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1 | (Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
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2 | (Text of Section from P.A. 102-282, 102-558, and 103-8) | ||||||
3 | Sec. 15.35. Franchise taxes payable by domestic | ||||||
4 | corporations. For the privilege of exercising its franchises | ||||||
5 | in this State, each domestic corporation shall pay to the | ||||||
6 | Secretary of State the following franchise taxes, computed on | ||||||
7 | the basis, at the rates and for the periods prescribed in this | ||||||
8 | Act: | ||||||
9 | (a) An initial franchise tax at the time of filing its | ||||||
10 | first report of issuance of shares. | ||||||
11 | (b) An additional franchise tax at the time of filing | ||||||
12 | (1) a report of the issuance of additional shares, or (2) a | ||||||
13 | report of an increase in paid-in capital without the | ||||||
14 | issuance of shares, or (3) an amendment to the articles of | ||||||
15 | incorporation or a report of cumulative changes in paid-in | ||||||
16 | capital, whenever any amendment or such report discloses | ||||||
17 | an increase in its paid-in capital over the amount thereof | ||||||
18 | last reported in any document, other than an annual | ||||||
19 | report, interim annual report or final transition annual | ||||||
20 | report required by this Act to be filed in the office of | ||||||
21 | the Secretary of State. | ||||||
22 | (c) An additional franchise tax at the time of filing | ||||||
23 | a report of paid-in capital following a statutory merger | ||||||
24 | or consolidation, which discloses that the paid-in capital | ||||||
25 | of the surviving or new corporation immediately after the |
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1 | merger or consolidation is greater than the sum of the | ||||||
2 | paid-in capital of all of the merged or consolidated | ||||||
3 | corporations as last reported by them in any documents, | ||||||
4 | other than annual reports, required by this Act to be | ||||||
5 | filed in the office of the Secretary of State; and in | ||||||
6 | addition, the surviving or new corporation shall be liable | ||||||
7 | for a further additional franchise tax on the paid-in | ||||||
8 | capital of each of the merged or consolidated corporations | ||||||
9 | as last reported by them in any document, other than an | ||||||
10 | annual report, required by this Act to be filed with the | ||||||
11 | Secretary of State from their taxable year end to the next | ||||||
12 | succeeding anniversary month or, in the case of a | ||||||
13 | corporation which has established an extended filing | ||||||
14 | month, the extended filing month of the surviving or new | ||||||
15 | corporation; however if the taxable year ends within the | ||||||
16 | 2-month period immediately preceding the anniversary month | ||||||
17 | or, in the case of a corporation which has established an | ||||||
18 | extended filing month, the extended filing month of the | ||||||
19 | surviving or new corporation the tax will be computed to | ||||||
20 | the anniversary month or, in the case of a corporation | ||||||
21 | which has established an extended filing month, the | ||||||
22 | extended filing month of the surviving or new corporation | ||||||
23 | in the next succeeding calendar year. | ||||||
24 | (d) An annual franchise tax payable each year with the | ||||||
25 | annual report which the corporation is required by this | ||||||
26 | Act to file. |
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1 | On or after January 1, 2020 and prior to January 1, 2021, | ||||||
2 | the first $30 in liability is exempt from the tax imposed under | ||||||
3 | this Section. On or after January 1, 2021 and prior to January | ||||||
4 | 1, 2024, the first $1,000 in liability is exempt from the tax | ||||||
5 | imposed under this Section. On or after January 1, 2024 and | ||||||
6 | prior to January 1, 2025 , the first $5,000 in liability is | ||||||
7 | exempt from the tax imposed under this Section. On or after | ||||||
8 | January 1, 2025 and prior to January 1, 2026, the first $10,000 | ||||||
9 | in liability is exempt from the tax imposed under this | ||||||
10 | Section. On or after January 1, 2026 and prior to January 1, | ||||||
11 | 2027, the first $100,000 in liability is exempt from the tax | ||||||
12 | imposed under this Section. The provisions of this Section | ||||||
13 | shall not require the payment of any franchise tax that would | ||||||
14 | otherwise have been due and payable on or after January 1, | ||||||
15 | 2027. There shall be no refunds or proration of franchise tax | ||||||
16 | for any taxes due and payable on or after January 1, 2027 on | ||||||
17 | the basis that a portion of the corporation's taxable year | ||||||
18 | extends beyond January 1, 2027. | ||||||
19 | This Section is repealed on January 1, 2028. | ||||||
20 | (Source: P.A. 102-282, eff. 1-1-22; 102-558, eff. 8-20-21; | ||||||
21 | 103-8, eff. 6-7-23.)
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