Bill Text: IL SB0127 | 2021-2022 | 102nd General Assembly | Introduced
Bill Title: Amends the Business Corporation Act of 1983. Makes a technical change in a Section concerning franchise taxes payable by domestic corporations.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-02-03 - Referred to Assignments [SB0127 Detail]
Download: Illinois-2021-SB0127-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)
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7 | (Section scheduled to be repealed on December 31, 2025)
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8 | Sec. 15.35. Franchise taxes payable by domestic | |||||||||||||||||||
9 | corporations. For the
the privilege of exercising its | |||||||||||||||||||
10 | franchises in this State, each
domestic corporation shall pay | |||||||||||||||||||
11 | to the Secretary of State the following
franchise taxes, | |||||||||||||||||||
12 | computed on the basis, at the rates and for the periods
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13 | prescribed in this Act: | |||||||||||||||||||
14 | (a) An initial franchise tax at the time of filing its | |||||||||||||||||||
15 | first report of
issuance of shares.
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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.
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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
2 month period immediately preceding the
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24 | anniversary month or, in the case of a corporation which | ||||||
25 | has established an
extended filing month, the extended | ||||||
26 | filing month of the surviving or new
corporation the tax |
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1 | will be computed to the anniversary month or, in the
case | ||||||
2 | of a corporation which has established an extended filing | ||||||
3 | month, the
extended filing month of the surviving or new | ||||||
4 | corporation in the next
succeeding calendar year.
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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.
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8 | (e) On or after January 1, 2020 and prior to January 1, | ||||||
9 | 2021, the first $30 in liability is exempt from the tax imposed | ||||||
10 | under this Section. On or after January 1, 2021 and prior to | ||||||
11 | January 1, 2022, the first $1,000 in liability is exempt from | ||||||
12 | the tax imposed under this Section. On or after January 1, 2022 | ||||||
13 | and prior to January 1, 2023, the first $10,000 in liability is | ||||||
14 | exempt from the tax imposed under this Section. On or after | ||||||
15 | January 1, 2023 and prior to January 1, 2024, the first | ||||||
16 | $100,000 in liability is exempt from the tax imposed under | ||||||
17 | this Section. The provisions of this Section shall not require | ||||||
18 | the payment of any franchise tax that would otherwise have | ||||||
19 | been due and payable on or after January 1, 2024. There shall | ||||||
20 | be no refunds or proration of franchise tax for any taxes due | ||||||
21 | and payable on or after January 1, 2024 on the basis that a | ||||||
22 | portion of the corporation's taxable year extends beyond | ||||||
23 | January 1, 2024. Public Act 101-9
This amendatory Act of the | ||||||
24 | 101st General Assembly shall not affect any right accrued or | ||||||
25 | established, or any liability or penalty incurred prior to | ||||||
26 | January 1, 2024. |
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1 | (f) This Section is repealed on December 31, 2025. | ||||||
2 | (Source: P.A. 101-9, eff. 6-5-19; revised 7-18-19.)
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