Bill Text: IL SB2127 | 2021-2022 | 102nd General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Provides that provisions concerning apportionment of income from federally regulated exchanges apply only for taxable years ending on or before December 31, 2021.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2021-05-19 - Added as Co-Sponsor Sen. Robert F. Martwick [SB2127 Detail]
Download: Illinois-2021-SB2127-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||||||||||||||||||||
5 | changing Section 304 as follows:
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6 | (35 ILCS 5/304) (from Ch. 120, par. 3-304)
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7 | Sec. 304. Business income of persons other than residents.
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8 | (a) In general. The business income of a person other than | ||||||||||||||||||||||||
9 | a
resident shall be allocated to this State if such person's | ||||||||||||||||||||||||
10 | business
income is derived solely from this State. If a person | ||||||||||||||||||||||||
11 | other than a
resident derives business income from this State | ||||||||||||||||||||||||
12 | and one or more other
states, then, for tax years ending on or | ||||||||||||||||||||||||
13 | before December 30, 1998, and
except as otherwise provided by | ||||||||||||||||||||||||
14 | this Section, such
person's business income shall be | ||||||||||||||||||||||||
15 | apportioned to this State by
multiplying the income by a | ||||||||||||||||||||||||
16 | fraction, the numerator of which is the sum
of the property | ||||||||||||||||||||||||
17 | factor (if any), the payroll factor (if any) and 200% of the
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18 | sales factor (if any), and the denominator of which is 4 | ||||||||||||||||||||||||
19 | reduced by the
number of factors other than the sales factor | ||||||||||||||||||||||||
20 | which have a denominator
of zero and by an additional 2 if the | ||||||||||||||||||||||||
21 | sales factor has a denominator of zero.
For tax years ending on | ||||||||||||||||||||||||
22 | or after December 31, 1998, and except as otherwise
provided | ||||||||||||||||||||||||
23 | by this Section, persons other than
residents who derive |
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1 | business income from this State and one or more other
states | ||||||
2 | shall compute their apportionment factor by weighting their | ||||||
3 | property,
payroll, and sales factors as provided in
subsection | ||||||
4 | (h) of this Section.
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5 | (1) Property factor.
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6 | (A) The property factor is a fraction, the numerator | ||||||
7 | of which is the
average value of the person's real and | ||||||
8 | tangible personal property owned
or rented and used in the | ||||||
9 | trade or business in this State during the
taxable year | ||||||
10 | and the denominator of which is the average value of all
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11 | the person's real and tangible personal property owned or | ||||||
12 | rented and
used in the trade or business during the | ||||||
13 | taxable year.
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14 | (B) Property owned by the person is valued at its | ||||||
15 | original cost.
Property rented by the person is valued at | ||||||
16 | 8 times the net annual rental
rate. Net annual rental rate | ||||||
17 | is the annual rental rate paid by the
person less any | ||||||
18 | annual rental rate received by the person from
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19 | sub-rentals.
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20 | (C) The average value of property shall be determined | ||||||
21 | by averaging
the values at the beginning and ending of the | ||||||
22 | taxable year but the
Director may require the averaging of | ||||||
23 | monthly values during the taxable
year if reasonably | ||||||
24 | required to reflect properly the average value of the
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25 | person's property.
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26 | (2) Payroll factor.
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1 | (A) The payroll factor is a fraction, the numerator of | ||||||
2 | which is the
total amount paid in this State during the | ||||||
3 | taxable year by the person
for compensation, and the | ||||||
4 | denominator of which is the total compensation
paid | ||||||
5 | everywhere during the taxable year.
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6 | (B) Compensation is paid in this State if:
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7 | (i) The individual's service is performed entirely | ||||||
8 | within this
State;
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9 | (ii) The individual's service is performed both | ||||||
10 | within and without
this State, but the service | ||||||
11 | performed without this State is incidental
to the | ||||||
12 | individual's service performed within this State; or
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13 | (iii) For tax years ending prior to December 31, | ||||||
14 | 2020, some of the service is performed within this | ||||||
15 | State and either
the base of operations, or if there is | ||||||
16 | no base of operations, the place
from which the | ||||||
17 | service is directed or controlled is within this | ||||||
18 | State,
or the base of operations or the place from | ||||||
19 | which the service is
directed or controlled is not in | ||||||
20 | any state in which some part of the
service is | ||||||
21 | performed, but the individual's residence is in this | ||||||
22 | State. For tax years ending on or after December 31, | ||||||
23 | 2020, compensation is paid in this State if some of the | ||||||
24 | individual's service is performed within this State, | ||||||
25 | the individual's service performed within this State | ||||||
26 | is nonincidental to the individual's service performed |
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1 | without this State, and the individual's service is | ||||||
2 | performed within this State for more than 30 working | ||||||
3 | days during the tax year. The amount of compensation | ||||||
4 | paid in this State shall include the portion of the | ||||||
5 | individual's total compensation for services performed | ||||||
6 | on behalf of his or her employer during the tax year | ||||||
7 | which the number of working days spent within this | ||||||
8 | State during the tax year bears to the total number of | ||||||
9 | working days spent both within and without this State | ||||||
10 | during the tax year. For purposes of this paragraph:
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11 | (a) The term "working day" means all days | ||||||
12 | during the tax year in which the individual | ||||||
13 | performs duties on behalf of his or her employer. | ||||||
14 | All days in which the individual performs no | ||||||
15 | duties on behalf of his or her employer (e.g., | ||||||
16 | weekends, vacation days, sick days, and holidays) | ||||||
17 | are not working days. | ||||||
18 | (b) A working day is spent within this State | ||||||
19 | if: | ||||||
20 | (1) the individual performs service on | ||||||
21 | behalf of the employer and a greater amount of | ||||||
22 | time on that day is spent by the individual | ||||||
23 | performing duties on behalf of the employer | ||||||
24 | within this State, without regard to time | ||||||
25 | spent traveling, than is spent performing | ||||||
26 | duties on behalf of the employer without this |
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1 | State; or | ||||||
2 | (2) the only service the individual | ||||||
3 | performs on behalf of the employer on that day | ||||||
4 | is traveling to a destination within this | ||||||
5 | State, and the individual arrives on that day. | ||||||
6 | (c) Working days spent within this State do | ||||||
7 | not include any day in which the employee is | ||||||
8 | performing services in this State during a | ||||||
9 | disaster period solely in response to a request | ||||||
10 | made to his or her employer by the government of | ||||||
11 | this State, by any political subdivision of this | ||||||
12 | State, or by a person conducting business in this | ||||||
13 | State to perform disaster or emergency-related | ||||||
14 | services in this State. For purposes of this item | ||||||
15 | (c): | ||||||
16 | "Declared State disaster or emergency" | ||||||
17 | means a disaster or emergency event (i) for | ||||||
18 | which a Governor's proclamation of a state of | ||||||
19 | emergency has been issued or (ii) for which a | ||||||
20 | Presidential declaration of a federal major | ||||||
21 | disaster or emergency has been issued. | ||||||
22 | "Disaster period" means a period that | ||||||
23 | begins 10 days prior to the date of the | ||||||
24 | Governor's proclamation or the President's | ||||||
25 | declaration (whichever is earlier) and extends | ||||||
26 | for a period of 60 calendar days after the end |
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1 | of the declared disaster or emergency period. | ||||||
2 | "Disaster or emergency-related services" | ||||||
3 | means repairing, renovating, installing, | ||||||
4 | building, or rendering services or conducting | ||||||
5 | other business activities that relate to | ||||||
6 | infrastructure that has been damaged, | ||||||
7 | impaired, or destroyed by the declared State | ||||||
8 | disaster or emergency. | ||||||
9 | "Infrastructure" means property and | ||||||
10 | equipment owned or used by a public utility, | ||||||
11 | communications network, broadband and internet | ||||||
12 | service provider, cable and video service | ||||||
13 | provider, electric or gas distribution system, | ||||||
14 | or water pipeline that provides service to | ||||||
15 | more than one customer or person, including | ||||||
16 | related support facilities. "Infrastructure" | ||||||
17 | includes, but is not limited to, real and | ||||||
18 | personal property such as buildings, offices, | ||||||
19 | power lines, cable lines, poles, | ||||||
20 | communications lines, pipes, structures, and | ||||||
21 | equipment. | ||||||
22 | (iv) Compensation paid to nonresident professional | ||||||
23 | athletes. | ||||||
24 | (a) General. The Illinois source income of a | ||||||
25 | nonresident individual who is a member of a | ||||||
26 | professional athletic team includes the portion of the |
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1 | individual's total compensation for services performed | ||||||
2 | as a member of a professional athletic team during the | ||||||
3 | taxable year which the number of duty days spent | ||||||
4 | within this State performing services for the team in | ||||||
5 | any manner during the taxable year bears to the total | ||||||
6 | number of duty days spent both within and without this | ||||||
7 | State during the taxable year. | ||||||
8 | (b) Travel days. Travel days that do not involve | ||||||
9 | either a game, practice, team meeting, or other | ||||||
10 | similar team event are not considered duty days spent | ||||||
11 | in this State. However, such travel days are | ||||||
12 | considered in the total duty days spent both within | ||||||
13 | and without this State. | ||||||
14 | (c) Definitions. For purposes of this subpart | ||||||
15 | (iv): | ||||||
16 | (1) The term "professional athletic team" | ||||||
17 | includes, but is not limited to, any professional | ||||||
18 | baseball, basketball, football, soccer, or hockey | ||||||
19 | team. | ||||||
20 | (2) The term "member of a professional | ||||||
21 | athletic team" includes those employees who are | ||||||
22 | active players, players on the disabled list, and | ||||||
23 | any other persons required to travel and who | ||||||
24 | travel with and perform services on behalf of a | ||||||
25 | professional athletic team on a regular basis. | ||||||
26 | This includes, but is not limited to, coaches, |
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1 | managers, and trainers. | ||||||
2 | (3) Except as provided in items (C) and (D) of | ||||||
3 | this subpart (3), the term "duty days" means all | ||||||
4 | days during the taxable year from the beginning of | ||||||
5 | the professional athletic team's official | ||||||
6 | pre-season training period through the last game | ||||||
7 | in which the team competes or is scheduled to | ||||||
8 | compete. Duty days shall be counted for the year | ||||||
9 | in which they occur, including where a team's | ||||||
10 | official pre-season training period through the | ||||||
11 | last game in which the team competes or is | ||||||
12 | scheduled to compete, occurs during more than one | ||||||
13 | tax year. | ||||||
14 | (A) Duty days shall also include days on | ||||||
15 | which a member of a professional athletic team | ||||||
16 | performs service for a team on a date that | ||||||
17 | does not fall within the foregoing period | ||||||
18 | (e.g., participation in instructional leagues, | ||||||
19 | the "All Star Game", or promotional | ||||||
20 | "caravans"). Performing a service for a | ||||||
21 | professional athletic team includes conducting | ||||||
22 | training and rehabilitation activities, when | ||||||
23 | such activities are conducted at team | ||||||
24 | facilities. | ||||||
25 | (B) Also included in duty days are game | ||||||
26 | days, practice days, days spent at team |
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1 | meetings, promotional caravans, preseason | ||||||
2 | training camps, and days served with the team | ||||||
3 | through all post-season games in which the | ||||||
4 | team competes or is scheduled to compete. | ||||||
5 | (C) Duty days for any person who joins a | ||||||
6 | team during the period from the beginning of | ||||||
7 | the professional athletic team's official | ||||||
8 | pre-season training period through the last | ||||||
9 | game in which the team competes, or is | ||||||
10 | scheduled to compete, shall begin on the day | ||||||
11 | that person joins the team. Conversely, duty | ||||||
12 | days for any person who leaves a team during | ||||||
13 | this period shall end on the day that person | ||||||
14 | leaves the team. Where a person switches teams | ||||||
15 | during a taxable year, a separate duty-day | ||||||
16 | calculation shall be made for the period the | ||||||
17 | person was with each team. | ||||||
18 | (D) Days for which a member of a | ||||||
19 | professional athletic team is not compensated | ||||||
20 | and is not performing services for the team in | ||||||
21 | any manner, including days when such member of | ||||||
22 | a professional athletic team has been | ||||||
23 | suspended without pay and prohibited from | ||||||
24 | performing any services for the team, shall | ||||||
25 | not be treated as duty days. | ||||||
26 | (E) Days for which a member of a |
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1 | professional athletic team is on the disabled | ||||||
2 | list and does not conduct rehabilitation | ||||||
3 | activities at facilities of the team, and is | ||||||
4 | not otherwise performing services for the team | ||||||
5 | in Illinois, shall not be considered duty days | ||||||
6 | spent in this State. All days on the disabled | ||||||
7 | list, however, are considered to be included | ||||||
8 | in total duty days spent both within and | ||||||
9 | without this State. | ||||||
10 | (4) The term "total compensation for services | ||||||
11 | performed as a member of a professional athletic | ||||||
12 | team" means the total compensation received during | ||||||
13 | the taxable year for services performed: | ||||||
14 | (A) from the beginning of the official | ||||||
15 | pre-season training period through the last | ||||||
16 | game in which the team competes or is | ||||||
17 | scheduled to compete during that taxable year; | ||||||
18 | and | ||||||
19 | (B) during the taxable year on a date | ||||||
20 | which does not fall within the foregoing | ||||||
21 | period (e.g., participation in instructional | ||||||
22 | leagues, the "All Star Game", or promotional | ||||||
23 | caravans). | ||||||
24 | This compensation shall include, but is not | ||||||
25 | limited to, salaries, wages, bonuses as described | ||||||
26 | in this subpart, and any other type of |
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1 | compensation paid during the taxable year to a | ||||||
2 | member of a professional athletic team for | ||||||
3 | services performed in that year. This compensation | ||||||
4 | does not include strike benefits, severance pay, | ||||||
5 | termination pay, contract or option year buy-out | ||||||
6 | payments, expansion or relocation payments, or any | ||||||
7 | other payments not related to services performed | ||||||
8 | for the team. | ||||||
9 | For purposes of this subparagraph, "bonuses" | ||||||
10 | included in "total compensation for services | ||||||
11 | performed as a member of a professional athletic | ||||||
12 | team" subject to the allocation described in | ||||||
13 | Section 302(c)(1) are: bonuses earned as a result | ||||||
14 | of play (i.e., performance bonuses) during the | ||||||
15 | season, including bonuses paid for championship, | ||||||
16 | playoff or "bowl" games played by a team, or for | ||||||
17 | selection to all-star league or other honorary | ||||||
18 | positions; and bonuses paid for signing a | ||||||
19 | contract, unless the payment of the signing bonus | ||||||
20 | is not conditional upon the signee playing any | ||||||
21 | games for the team or performing any subsequent | ||||||
22 | services for the team or even making the team, the | ||||||
23 | signing bonus is payable separately from the | ||||||
24 | salary and any other compensation, and the signing | ||||||
25 | bonus is nonrefundable.
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26 | (3) Sales factor.
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1 | (A) The sales factor is a fraction, the numerator of | ||||||
2 | which is the
total sales of the person in this State during | ||||||
3 | the taxable year, and the
denominator of which is the | ||||||
4 | total sales of the person everywhere during
the taxable | ||||||
5 | year.
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6 | (B) Sales of tangible personal property are in this | ||||||
7 | State if:
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8 | (i) The property is delivered or shipped to a | ||||||
9 | purchaser, other than
the United States government, | ||||||
10 | within this State regardless of the f. o.
b. point or | ||||||
11 | other conditions of the sale; or
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12 | (ii) The property is shipped from an office, | ||||||
13 | store, warehouse,
factory or other place of storage in | ||||||
14 | this State and either the purchaser
is the United | ||||||
15 | States government or the person is not taxable in the
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16 | state of the purchaser; provided, however, that | ||||||
17 | premises owned or leased
by a person who has | ||||||
18 | independently contracted with the seller for the | ||||||
19 | printing
of newspapers, periodicals or books shall not | ||||||
20 | be deemed to be an office,
store, warehouse, factory | ||||||
21 | or other place of storage for purposes of this
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22 | Section.
Sales of tangible personal property are not | ||||||
23 | in this State if the
seller and purchaser would be | ||||||
24 | members of the same unitary business group
but for the | ||||||
25 | fact that either the seller or purchaser is a person | ||||||
26 | with 80%
or more of total business activity outside of |
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1 | the United States and the
property is purchased for | ||||||
2 | resale.
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3 | (B-1) Patents, copyrights, trademarks, and similar | ||||||
4 | items of intangible
personal property.
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5 | (i) Gross receipts from the licensing, sale, or | ||||||
6 | other disposition of a
patent, copyright, trademark, | ||||||
7 | or similar item of intangible personal property, other | ||||||
8 | than gross receipts governed by paragraph (B-7) of | ||||||
9 | this item (3),
are in this State to the extent the item | ||||||
10 | is utilized in this State during the
year the gross | ||||||
11 | receipts are included in gross income.
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12 | (ii) Place of utilization.
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13 | (I) A patent is utilized in a state to the | ||||||
14 | extent that it is employed
in production, | ||||||
15 | fabrication, manufacturing, or other processing in | ||||||
16 | the state or
to the extent that a patented product | ||||||
17 | is produced in the state. If a patent is
utilized | ||||||
18 | in
more than one state, the extent to which it is | ||||||
19 | utilized in any one state shall
be a fraction | ||||||
20 | equal to the gross receipts of the licensee or | ||||||
21 | purchaser from
sales or leases of items produced, | ||||||
22 | fabricated, manufactured, or processed
within that | ||||||
23 | state using the patent and of patented items | ||||||
24 | produced within that
state, divided by the total | ||||||
25 | of such gross receipts for all states in which the
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26 | patent is utilized.
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1 | (II) A copyright is utilized in a state to the | ||||||
2 | extent that printing or
other publication | ||||||
3 | originates in the state. If a copyright is | ||||||
4 | utilized in more
than one state, the extent to | ||||||
5 | which it is utilized in any one state shall be a
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6 | fraction equal to the gross receipts from sales or | ||||||
7 | licenses of materials
printed or published in that | ||||||
8 | state divided by the total of such gross receipts
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9 | for all states in which the copyright is utilized.
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10 | (III) Trademarks and other items of intangible | ||||||
11 | personal property
governed by this paragraph (B-1) | ||||||
12 | are utilized in the state in which the
commercial | ||||||
13 | domicile of the licensee or purchaser is located.
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14 | (iii) If the state of utilization of an item of | ||||||
15 | property governed by
this paragraph (B-1) cannot be | ||||||
16 | determined from the taxpayer's books and
records or | ||||||
17 | from the books and records of any person related to the | ||||||
18 | taxpayer
within the meaning of Section 267(b) of the | ||||||
19 | Internal Revenue Code, 26 U.S.C.
267, the gross
| ||||||
20 | receipts attributable to that item shall be excluded | ||||||
21 | from both the numerator
and the denominator of the | ||||||
22 | sales factor.
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23 | (B-2) Gross receipts from the license, sale, or other | ||||||
24 | disposition of
patents, copyrights, trademarks, and | ||||||
25 | similar items of intangible personal
property, other than | ||||||
26 | gross receipts governed by paragraph (B-7) of this item |
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1 | (3), may be included in the numerator or denominator of | ||||||
2 | the sales factor
only if gross receipts from licenses, | ||||||
3 | sales, or other disposition of such items
comprise more | ||||||
4 | than 50% of the taxpayer's total gross receipts included | ||||||
5 | in gross
income during the tax year and during each of the | ||||||
6 | 2 immediately preceding tax
years; provided that, when a | ||||||
7 | taxpayer is a member of a unitary business group,
such | ||||||
8 | determination shall be made on the basis of the gross | ||||||
9 | receipts of the
entire unitary business group.
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10 | (B-5) For taxable years ending on or after December | ||||||
11 | 31, 2008, except as provided in subsections (ii) through | ||||||
12 | (vii), receipts from the sale of telecommunications | ||||||
13 | service or mobile telecommunications service are in this | ||||||
14 | State if the customer's service address is in this State. | ||||||
15 | (i) For purposes of this subparagraph (B-5), the | ||||||
16 | following terms have the following meanings: | ||||||
17 | "Ancillary services" means services that are | ||||||
18 | associated with or incidental to the provision of | ||||||
19 | "telecommunications services", including , but not | ||||||
20 | limited to , "detailed telecommunications billing", | ||||||
21 | "directory assistance", "vertical service", and "voice | ||||||
22 | mail services". | ||||||
23 | "Air-to-Ground Radiotelephone service" means a | ||||||
24 | radio service, as that term is defined in 47 CFR 22.99, | ||||||
25 | in which common carriers are authorized to offer and | ||||||
26 | provide radio telecommunications service for hire to |
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1 | subscribers in aircraft. | ||||||
2 | "Call-by-call Basis" means any method of charging | ||||||
3 | for telecommunications services where the price is | ||||||
4 | measured by individual calls. | ||||||
5 | "Communications Channel" means a physical or | ||||||
6 | virtual path of communications over which signals are | ||||||
7 | transmitted between or among customer channel | ||||||
8 | termination points. | ||||||
9 | "Conference bridging service" means an "ancillary | ||||||
10 | service" that links two or more participants of an | ||||||
11 | audio or video conference call and may include the | ||||||
12 | provision of a telephone number. "Conference bridging | ||||||
13 | service" does not include the "telecommunications | ||||||
14 | services" used to reach the conference bridge. | ||||||
15 | "Customer Channel Termination Point" means the | ||||||
16 | location where the customer either inputs or receives | ||||||
17 | the communications. | ||||||
18 | "Detailed telecommunications billing service" | ||||||
19 | means an "ancillary service" of separately stating | ||||||
20 | information pertaining to individual calls on a | ||||||
21 | customer's billing statement. | ||||||
22 | "Directory assistance" means an "ancillary | ||||||
23 | service" of providing telephone number information, | ||||||
24 | and/or address information. | ||||||
25 | "Home service provider" means the facilities based | ||||||
26 | carrier or reseller with which the customer contracts |
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1 | for the provision of mobile telecommunications | ||||||
2 | services. | ||||||
3 | "Mobile telecommunications service" means | ||||||
4 | commercial mobile radio service, as defined in Section | ||||||
5 | 20.3 of Title 47 of the Code of Federal Regulations as | ||||||
6 | in effect on June 1, 1999. | ||||||
7 | "Place of primary use" means the street address | ||||||
8 | representative of where the customer's use of the | ||||||
9 | telecommunications service primarily occurs, which | ||||||
10 | must be the residential street address or the primary | ||||||
11 | business street address of the customer. In the case | ||||||
12 | of mobile telecommunications services, "place of | ||||||
13 | primary use" must be within the licensed service area | ||||||
14 | of the home service provider. | ||||||
15 | "Post-paid telecommunication service" means the | ||||||
16 | telecommunications service obtained by making a | ||||||
17 | payment on a call-by-call basis either through the use | ||||||
18 | of a credit card or payment mechanism such as a bank | ||||||
19 | card, travel card, credit card, or debit card, or by | ||||||
20 | charge made to a telephone number which is not | ||||||
21 | associated with the origination or termination of the | ||||||
22 | telecommunications service. A post-paid calling | ||||||
23 | service includes telecommunications service, except a | ||||||
24 | prepaid wireless calling service, that would be a | ||||||
25 | prepaid calling service except it is not exclusively a | ||||||
26 | telecommunication service. |
| |||||||
| |||||||
1 | "Prepaid telecommunication service" means the | ||||||
2 | right to access exclusively telecommunications | ||||||
3 | services, which must be paid for in advance and which | ||||||
4 | enables the origination of calls using an access | ||||||
5 | number or authorization code, whether manually or | ||||||
6 | electronically dialed, and that is sold in | ||||||
7 | predetermined units or dollars of which the number | ||||||
8 | declines with use in a known amount. | ||||||
9 | "Prepaid Mobile telecommunication service" means a | ||||||
10 | telecommunications service that provides the right to | ||||||
11 | utilize mobile wireless service as well as other | ||||||
12 | non-telecommunication services, including , but not | ||||||
13 | limited to , ancillary services, which must be paid for | ||||||
14 | in advance that is sold in predetermined units or | ||||||
15 | dollars of which the number declines with use in a | ||||||
16 | known amount. | ||||||
17 | "Private communication service" means a | ||||||
18 | telecommunication service that entitles the customer | ||||||
19 | to exclusive or priority use of a communications | ||||||
20 | channel or group of channels between or among | ||||||
21 | termination points, regardless of the manner in which | ||||||
22 | such channel or channels are connected, and includes | ||||||
23 | switching capacity, extension lines, stations, and any | ||||||
24 | other associated services that are provided in | ||||||
25 | connection with the use of such channel or channels. | ||||||
26 | "Service address" means: |
| |||||||
| |||||||
1 | (a) The location of the telecommunications | ||||||
2 | equipment to which a customer's call is charged | ||||||
3 | and from which the call originates or terminates, | ||||||
4 | regardless of where the call is billed or paid; | ||||||
5 | (b) If the location in line (a) is not known, | ||||||
6 | service address means the origination point of the | ||||||
7 | signal of the telecommunications services first | ||||||
8 | identified by either the seller's | ||||||
9 | telecommunications system or in information | ||||||
10 | received by the seller from its service provider | ||||||
11 | where the system used to transport such signals is | ||||||
12 | not that of the seller; and | ||||||
13 | (c) If the locations in line (a) and line (b) | ||||||
14 | are not known, the service address means the | ||||||
15 | location of the customer's place of primary use. | ||||||
16 | "Telecommunications service" means the electronic | ||||||
17 | transmission, conveyance, or routing of voice, data, | ||||||
18 | audio, video, or any other information or signals to a | ||||||
19 | point, or between or among points. The term | ||||||
20 | "telecommunications service" includes such | ||||||
21 | transmission, conveyance, or routing in which computer | ||||||
22 | processing applications are used to act on the form, | ||||||
23 | code or protocol of the content for purposes of | ||||||
24 | transmission, conveyance or routing without regard to | ||||||
25 | whether such service is referred to as voice over | ||||||
26 | Internet protocol services or is classified by the |
| |||||||
| |||||||
1 | Federal Communications Commission as enhanced or value | ||||||
2 | added. "Telecommunications service" does not include: | ||||||
3 | (a) Data processing and information services | ||||||
4 | that allow data to be generated, acquired, stored, | ||||||
5 | processed, or retrieved and delivered by an | ||||||
6 | electronic transmission to a purchaser when such | ||||||
7 | purchaser's primary purpose for the underlying | ||||||
8 | transaction is the processed data or information; | ||||||
9 | (b) Installation or maintenance of wiring or | ||||||
10 | equipment on a customer's premises; | ||||||
11 | (c) Tangible personal property; | ||||||
12 | (d) Advertising, including , but not limited | ||||||
13 | to , directory advertising; | ||||||
14 | (e) Billing and collection services provided | ||||||
15 | to third parties; | ||||||
16 | (f) Internet access service; | ||||||
17 | (g) Radio and television audio and video | ||||||
18 | programming services, regardless of the medium, | ||||||
19 | including the furnishing of transmission, | ||||||
20 | conveyance and routing of such services by the | ||||||
21 | programming service provider. Radio and television | ||||||
22 | audio and video programming services shall | ||||||
23 | include , but not be limited to , cable service as | ||||||
24 | defined in 47 USC 522(6) and audio and video | ||||||
25 | programming services delivered by commercial | ||||||
26 | mobile radio service providers, as defined in 47 |
| |||||||
| |||||||
1 | CFR 20.3; | ||||||
2 | (h) "Ancillary services"; or | ||||||
3 | (i) Digital products "delivered | ||||||
4 | electronically", including , but not limited to , | ||||||
5 | software, music, video, reading materials or ring | ||||||
6 | tones. | ||||||
7 | "Vertical service" means an "ancillary service" | ||||||
8 | that is offered in connection with one or more | ||||||
9 | "telecommunications services", which offers advanced | ||||||
10 | calling features that allow customers to identify | ||||||
11 | callers and to manage multiple calls and call | ||||||
12 | connections, including "conference bridging services". | ||||||
13 | "Voice mail service" means an "ancillary service" | ||||||
14 | that enables the customer to store, send or receive | ||||||
15 | recorded messages. "Voice mail service" does not | ||||||
16 | include any "vertical services" that the customer may | ||||||
17 | be required to have in order to utilize the "voice mail | ||||||
18 | service". | ||||||
19 | (ii) Receipts from the sale of telecommunications | ||||||
20 | service sold on an individual call-by-call basis are | ||||||
21 | in this State if either of the following applies: | ||||||
22 | (a) The call both originates and terminates in | ||||||
23 | this State. | ||||||
24 | (b) The call either originates or terminates | ||||||
25 | in this State and the service address is located | ||||||
26 | in this State. |
| |||||||
| |||||||
1 | (iii) Receipts from the sale of postpaid | ||||||
2 | telecommunications service at retail are in this State | ||||||
3 | if the origination point of the telecommunication | ||||||
4 | signal, as first identified by the service provider's | ||||||
5 | telecommunication system or as identified by | ||||||
6 | information received by the seller from its service | ||||||
7 | provider if the system used to transport | ||||||
8 | telecommunication signals is not the seller's, is | ||||||
9 | located in this State. | ||||||
10 | (iv) Receipts from the sale of prepaid | ||||||
11 | telecommunications service or prepaid mobile | ||||||
12 | telecommunications service at retail are in this State | ||||||
13 | if the purchaser obtains the prepaid card or similar | ||||||
14 | means of conveyance at a location in this State. | ||||||
15 | Receipts from recharging a prepaid telecommunications | ||||||
16 | service or mobile telecommunications service is in | ||||||
17 | this State if the purchaser's billing information | ||||||
18 | indicates a location in this State. | ||||||
19 | (v) Receipts from the sale of private | ||||||
20 | communication services are in this State as follows: | ||||||
21 | (a) 100% of receipts from charges imposed at | ||||||
22 | each channel termination point in this State. | ||||||
23 | (b) 100% of receipts from charges for the | ||||||
24 | total channel mileage between each channel | ||||||
25 | termination point in this State. | ||||||
26 | (c) 50% of the total receipts from charges for |
| |||||||
| |||||||
1 | service segments when those segments are between 2 | ||||||
2 | customer channel termination points, 1 of which is | ||||||
3 | located in this State and the other is located | ||||||
4 | outside of this State, which segments are | ||||||
5 | separately charged. | ||||||
6 | (d) The receipts from charges for service | ||||||
7 | segments with a channel termination point located | ||||||
8 | in this State and in two or more other states, and | ||||||
9 | which segments are not separately billed, are in | ||||||
10 | this State based on a percentage determined by | ||||||
11 | dividing the number of customer channel | ||||||
12 | termination points in this State by the total | ||||||
13 | number of customer channel termination points. | ||||||
14 | (vi) Receipts from charges for ancillary services | ||||||
15 | for telecommunications service sold to customers at | ||||||
16 | retail are in this State if the customer's primary | ||||||
17 | place of use of telecommunications services associated | ||||||
18 | with those ancillary services is in this State. If the | ||||||
19 | seller of those ancillary services cannot determine | ||||||
20 | where the associated telecommunications are located, | ||||||
21 | then the ancillary services shall be based on the | ||||||
22 | location of the purchaser. | ||||||
23 | (vii) Receipts to access a carrier's network or | ||||||
24 | from the sale of telecommunication services or | ||||||
25 | ancillary services for resale are in this State as | ||||||
26 | follows: |
| |||||||
| |||||||
1 | (a) 100% of the receipts from access fees | ||||||
2 | attributable to intrastate telecommunications | ||||||
3 | service that both originates and terminates in | ||||||
4 | this State. | ||||||
5 | (b) 50% of the receipts from access fees | ||||||
6 | attributable to interstate telecommunications | ||||||
7 | service if the interstate call either originates | ||||||
8 | or terminates in this State. | ||||||
9 | (c) 100% of the receipts from interstate end | ||||||
10 | user access line charges, if the customer's | ||||||
11 | service address is in this State. As used in this | ||||||
12 | subdivision, "interstate end user access line | ||||||
13 | charges" includes, but is not limited to, the | ||||||
14 | surcharge approved by the federal communications | ||||||
15 | commission and levied pursuant to 47 CFR 69. | ||||||
16 | (d) Gross receipts from sales of | ||||||
17 | telecommunication services or from ancillary | ||||||
18 | services for telecommunications services sold to | ||||||
19 | other telecommunication service providers for | ||||||
20 | resale shall be sourced to this State using the | ||||||
21 | apportionment concepts used for non-resale | ||||||
22 | receipts of telecommunications services if the | ||||||
23 | information is readily available to make that | ||||||
24 | determination. If the information is not readily | ||||||
25 | available, then the taxpayer may use any other | ||||||
26 | reasonable and consistent method. |
| |||||||
| |||||||
1 | (B-7) For taxable years ending on or after December | ||||||
2 | 31, 2008, receipts from the sale of broadcasting services | ||||||
3 | are in this State if the broadcasting services are | ||||||
4 | received in this State. For purposes of this paragraph | ||||||
5 | (B-7), the following terms have the following meanings: | ||||||
6 | "Advertising revenue" means consideration received | ||||||
7 | by the taxpayer in exchange for broadcasting services | ||||||
8 | or allowing the broadcasting of commercials or | ||||||
9 | announcements in connection with the broadcasting of | ||||||
10 | film or radio programming, from sponsorships of the | ||||||
11 | programming, or from product placements in the | ||||||
12 | programming. | ||||||
13 | "Audience factor" means the ratio that the | ||||||
14 | audience or subscribers located in this State of a | ||||||
15 | station, a network, or a cable system bears to the | ||||||
16 | total audience or total subscribers for that station, | ||||||
17 | network, or cable system. The audience factor for film | ||||||
18 | or radio programming shall be determined by reference | ||||||
19 | to the books and records of the taxpayer or by | ||||||
20 | reference to published rating statistics provided the | ||||||
21 | method used by the taxpayer is consistently used from | ||||||
22 | year to year for this purpose and fairly represents | ||||||
23 | the taxpayer's activity in this State. | ||||||
24 | "Broadcast" or "broadcasting" or "broadcasting | ||||||
25 | services" means the transmission or provision of film | ||||||
26 | or radio programming, whether through the public |
| |||||||
| |||||||
1 | airwaves, by cable, by direct or indirect satellite | ||||||
2 | transmission, or by any other means of communication, | ||||||
3 | either through a station, a network, or a cable | ||||||
4 | system. | ||||||
5 | "Film" or "film programming" means the broadcast | ||||||
6 | on television of any and all performances, events, or | ||||||
7 | productions, including , but not limited to , news, | ||||||
8 | sporting events, plays, stories, or other literary, | ||||||
9 | commercial, educational, or artistic works, either | ||||||
10 | live or through the use of video tape, disc, or any | ||||||
11 | other type of format or medium. Each episode of a | ||||||
12 | series of films produced for television shall | ||||||
13 | constitute separate "film" notwithstanding that the | ||||||
14 | series relates to the same principal subject and is | ||||||
15 | produced during one or more tax periods. | ||||||
16 | "Radio" or "radio programming" means the broadcast | ||||||
17 | on radio of any and all performances, events, or | ||||||
18 | productions, including , but not limited to , news, | ||||||
19 | sporting events, plays, stories, or other literary, | ||||||
20 | commercial, educational, or artistic works, either | ||||||
21 | live or through the use of an audio tape, disc, or any | ||||||
22 | other format or medium. Each episode in a series of | ||||||
23 | radio programming produced for radio broadcast shall | ||||||
24 | constitute a separate "radio programming" | ||||||
25 | notwithstanding that the series relates to the same | ||||||
26 | principal subject and is produced during one or more |
| |||||||
| |||||||
1 | tax periods. | ||||||
2 | (i) In the case of advertising revenue from | ||||||
3 | broadcasting, the customer is the advertiser and | ||||||
4 | the service is received in this State if the | ||||||
5 | commercial domicile of the advertiser is in this | ||||||
6 | State. | ||||||
7 | (ii) In the case where film or radio | ||||||
8 | programming is broadcast by a station, a network, | ||||||
9 | or a cable system for a fee or other remuneration | ||||||
10 | received from the recipient of the broadcast, the | ||||||
11 | portion of the service that is received in this | ||||||
12 | State is measured by the portion of the recipients | ||||||
13 | of the broadcast located in this State. | ||||||
14 | Accordingly, the fee or other remuneration for | ||||||
15 | such service that is included in the Illinois | ||||||
16 | numerator of the sales factor is the total of | ||||||
17 | those fees or other remuneration received from | ||||||
18 | recipients in Illinois. For purposes of this | ||||||
19 | paragraph, a taxpayer may determine the location | ||||||
20 | of the recipients of its broadcast using the | ||||||
21 | address of the recipient shown in its contracts | ||||||
22 | with the recipient or using the billing address of | ||||||
23 | the recipient in the taxpayer's records. | ||||||
24 | (iii) In the case where film or radio | ||||||
25 | programming is broadcast by a station, a network, | ||||||
26 | or a cable system for a fee or other remuneration |
| |||||||
| |||||||
1 | from the person providing the programming, the | ||||||
2 | portion of the broadcast service that is received | ||||||
3 | by such station, network, or cable system in this | ||||||
4 | State is measured by the portion of recipients of | ||||||
5 | the broadcast located in this State. Accordingly, | ||||||
6 | the amount of revenue related to such an | ||||||
7 | arrangement that is included in the Illinois | ||||||
8 | numerator of the sales factor is the total fee or | ||||||
9 | other total remuneration from the person providing | ||||||
10 | the programming related to that broadcast | ||||||
11 | multiplied by the Illinois audience factor for | ||||||
12 | that broadcast. | ||||||
13 | (iv) In the case where film or radio | ||||||
14 | programming is provided by a taxpayer that is a | ||||||
15 | network or station to a customer for broadcast in | ||||||
16 | exchange for a fee or other remuneration from that | ||||||
17 | customer the broadcasting service is received at | ||||||
18 | the location of the office of the customer from | ||||||
19 | which the services were ordered in the regular | ||||||
20 | course of the customer's trade or business. | ||||||
21 | Accordingly, in such a case the revenue derived by | ||||||
22 | the taxpayer that is included in the taxpayer's | ||||||
23 | Illinois numerator of the sales factor is the | ||||||
24 | revenue from such customers who receive the | ||||||
25 | broadcasting service in Illinois. | ||||||
26 | (v) In the case where film or radio |
| |||||||
| |||||||
1 | programming is provided by a taxpayer that is not | ||||||
2 | a network or station to another person for | ||||||
3 | broadcasting in exchange for a fee or other | ||||||
4 | remuneration from that person, the broadcasting | ||||||
5 | service is received at the location of the office | ||||||
6 | of the customer from which the services were | ||||||
7 | ordered in the regular course of the customer's | ||||||
8 | trade or business. Accordingly, in such a case the | ||||||
9 | revenue derived by the taxpayer that is included | ||||||
10 | in the taxpayer's Illinois numerator of the sales | ||||||
11 | factor is the revenue from such customers who | ||||||
12 | receive the broadcasting service in Illinois. | ||||||
13 | (B-8) Gross receipts from winnings under the Illinois | ||||||
14 | Lottery Law from the assignment of a prize under Section | ||||||
15 | 13.1 of the Illinois Lottery Law are received in this | ||||||
16 | State. This paragraph (B-8) applies only to taxable years | ||||||
17 | ending on or after December 31, 2013. | ||||||
18 | (B-9) For taxable years ending on or after December | ||||||
19 | 31, 2019, gross receipts from winnings from pari-mutuel | ||||||
20 | wagering conducted at a wagering facility licensed under | ||||||
21 | the Illinois Horse Racing Act of 1975 or from winnings | ||||||
22 | from gambling games conducted on a riverboat or in a | ||||||
23 | casino or organization gaming facility licensed under the | ||||||
24 | Illinois Gambling Act are in this State. | ||||||
25 | (C) For taxable years ending before December 31, 2008, | ||||||
26 | sales, other than sales governed by paragraphs (B), (B-1), |
| |||||||
| |||||||
1 | (B-2), and (B-8) are in
this State if:
| ||||||
2 | (i) The income-producing activity is performed in | ||||||
3 | this State; or
| ||||||
4 | (ii) The income-producing activity is performed | ||||||
5 | both within and
without this State and a greater | ||||||
6 | proportion of the income-producing
activity is | ||||||
7 | performed within this State than without this State, | ||||||
8 | based
on performance costs.
| ||||||
9 | (C-5) For taxable years ending on or after December | ||||||
10 | 31, 2008, sales, other than sales governed by paragraphs | ||||||
11 | (B), (B-1), (B-2), (B-5), and (B-7), are in this State if | ||||||
12 | any of the following criteria are met: | ||||||
13 | (i) Sales from the sale or lease of real property | ||||||
14 | are in this State if the property is located in this | ||||||
15 | State. | ||||||
16 | (ii) Sales from the lease or rental of tangible | ||||||
17 | personal property are in this State if the property is | ||||||
18 | located in this State during the rental period. Sales | ||||||
19 | from the lease or rental of tangible personal property | ||||||
20 | that is characteristically moving property, including, | ||||||
21 | but not limited to, motor vehicles, rolling stock, | ||||||
22 | aircraft, vessels, or mobile equipment are in this | ||||||
23 | State to the extent that the property is used in this | ||||||
24 | State. | ||||||
25 | (iii) In the case of interest, net gains (but not | ||||||
26 | less than zero) and other items of income from |
| |||||||
| |||||||
1 | intangible personal property, the sale is in this | ||||||
2 | State if: | ||||||
3 | (a) in the case of a taxpayer who is a dealer | ||||||
4 | in the item of intangible personal property within | ||||||
5 | the meaning of Section 475 of the Internal Revenue | ||||||
6 | Code, the income or gain is received from a | ||||||
7 | customer in this State. For purposes of this | ||||||
8 | subparagraph, a customer is in this State if the | ||||||
9 | customer is an individual, trust or estate who is | ||||||
10 | a resident of this State and, for all other | ||||||
11 | customers, if the customer's commercial domicile | ||||||
12 | is in this State. Unless the dealer has actual | ||||||
13 | knowledge of the residence or commercial domicile | ||||||
14 | of a customer during a taxable year, the customer | ||||||
15 | shall be deemed to be a customer in this State if | ||||||
16 | the billing address of the customer, as shown in | ||||||
17 | the records of the dealer, is in this State; or | ||||||
18 | (b) in all other cases, if the | ||||||
19 | income-producing activity of the taxpayer is | ||||||
20 | performed in this State or, if the | ||||||
21 | income-producing activity of the taxpayer is | ||||||
22 | performed both within and without this State, if a | ||||||
23 | greater proportion of the income-producing | ||||||
24 | activity of the taxpayer is performed within this | ||||||
25 | State than in any other state, based on | ||||||
26 | performance costs. |
| |||||||
| |||||||
1 | (iv) Sales of services are in this State if the | ||||||
2 | services are received in this State. For the purposes | ||||||
3 | of this section, gross receipts from the performance | ||||||
4 | of services provided to a corporation, partnership, or | ||||||
5 | trust may only be attributed to a state where that | ||||||
6 | corporation, partnership, or trust has a fixed place | ||||||
7 | of business. If the state where the services are | ||||||
8 | received is not readily determinable or is a state | ||||||
9 | where the corporation, partnership, or trust receiving | ||||||
10 | the service does not have a fixed place of business, | ||||||
11 | the services shall be deemed to be received at the | ||||||
12 | location of the office of the customer from which the | ||||||
13 | services were ordered in the regular course of the | ||||||
14 | customer's trade or business. If the ordering office | ||||||
15 | cannot be determined, the services shall be deemed to | ||||||
16 | be received at the office of the customer to which the | ||||||
17 | services are billed. If the taxpayer is not taxable in | ||||||
18 | the state in which the services are received, the sale | ||||||
19 | must be excluded from both the numerator and the | ||||||
20 | denominator of the sales factor. The Department shall | ||||||
21 | adopt rules prescribing where specific types of | ||||||
22 | service are received, including, but not limited to, | ||||||
23 | publishing, and utility service.
| ||||||
24 | (D) For taxable years ending on or after December 31, | ||||||
25 | 1995, the following
items of income shall not be included | ||||||
26 | in the numerator or denominator of the
sales factor: |
| |||||||
| |||||||
1 | dividends; amounts included under Section 78 of the | ||||||
2 | Internal
Revenue Code; and Subpart F income as defined in | ||||||
3 | Section 952 of the Internal
Revenue Code.
No inference | ||||||
4 | shall be drawn from the enactment of this paragraph (D) in
| ||||||
5 | construing this Section for taxable years ending before | ||||||
6 | December 31, 1995.
| ||||||
7 | (E) Paragraphs (B-1) and (B-2) shall apply to tax | ||||||
8 | years ending on or
after December 31, 1999, provided that | ||||||
9 | a taxpayer may elect to apply the
provisions of these | ||||||
10 | paragraphs to prior tax years. Such election shall be made
| ||||||
11 | in the form and manner prescribed by the Department, shall | ||||||
12 | be irrevocable, and
shall apply to all tax years; provided | ||||||
13 | that, if a taxpayer's Illinois income
tax liability for | ||||||
14 | any tax year, as assessed under Section 903 prior to | ||||||
15 | January
1, 1999, was computed in a manner contrary to the | ||||||
16 | provisions of paragraphs
(B-1) or (B-2), no refund shall | ||||||
17 | be payable to the taxpayer for that tax year to
the extent | ||||||
18 | such refund is the result of applying the provisions of | ||||||
19 | paragraph
(B-1) or (B-2) retroactively. In the case of a | ||||||
20 | unitary business group, such
election shall apply to all | ||||||
21 | members of such group for every tax year such group
is in | ||||||
22 | existence, but shall not apply to any taxpayer for any | ||||||
23 | period during
which that taxpayer is not a member of such | ||||||
24 | group.
| ||||||
25 | (b) Insurance companies.
| ||||||
26 | (1) In general. Except as otherwise
provided by |
| |||||||
| |||||||
1 | paragraph (2), business income of an insurance company for | ||||||
2 | a
taxable year shall be apportioned to this State by | ||||||
3 | multiplying such
income by a fraction, the numerator of | ||||||
4 | which is the direct premiums
written for insurance upon | ||||||
5 | property or risk in this State, and the
denominator of | ||||||
6 | which is the direct premiums written for insurance upon
| ||||||
7 | property or risk everywhere. For purposes of this | ||||||
8 | subsection, the term
"direct premiums written" means the | ||||||
9 | total amount of direct premiums
written, assessments and | ||||||
10 | annuity considerations as reported for the
taxable year on | ||||||
11 | the annual statement filed by the company with the
| ||||||
12 | Illinois Director of Insurance in the form approved by the | ||||||
13 | National
Convention of Insurance Commissioners
or such | ||||||
14 | other form as may be
prescribed in lieu thereof.
| ||||||
15 | (2) Reinsurance. If the principal source of premiums | ||||||
16 | written by an
insurance company consists of premiums for | ||||||
17 | reinsurance accepted by it,
the business income of such | ||||||
18 | company shall be apportioned to this State
by multiplying | ||||||
19 | such income by a fraction, the numerator of which is the
| ||||||
20 | sum of (i) direct premiums written for insurance upon | ||||||
21 | property or risk
in this State, plus (ii) premiums written | ||||||
22 | for reinsurance accepted in
respect of property or risk in | ||||||
23 | this State, and the denominator of which
is the sum of | ||||||
24 | (iii) direct premiums written for insurance upon property
| ||||||
25 | or risk everywhere, plus (iv) premiums written for | ||||||
26 | reinsurance accepted
in respect of property or risk |
| |||||||
| |||||||
1 | everywhere. For purposes of this
paragraph, premiums | ||||||
2 | written for reinsurance accepted in respect of
property or | ||||||
3 | risk in this State, whether or not otherwise determinable,
| ||||||
4 | may, at the election of the company, be determined on the | ||||||
5 | basis of the
proportion which premiums written for | ||||||
6 | reinsurance accepted from
companies commercially domiciled | ||||||
7 | in Illinois bears to premiums written
for reinsurance | ||||||
8 | accepted from all sources, or, alternatively, in the
| ||||||
9 | proportion which the sum of the direct premiums written | ||||||
10 | for insurance
upon property or risk in this State by each | ||||||
11 | ceding company from which
reinsurance is accepted bears to | ||||||
12 | the sum of the total direct premiums
written by each such | ||||||
13 | ceding company for the taxable year. The election made by | ||||||
14 | a company under this paragraph for its first taxable year | ||||||
15 | ending on or after December 31, 2011, shall be binding for | ||||||
16 | that company for that taxable year and for all subsequent | ||||||
17 | taxable years, and may be altered only with the written | ||||||
18 | permission of the Department, which shall not be | ||||||
19 | unreasonably withheld.
| ||||||
20 | (c) Financial organizations.
| ||||||
21 | (1) In general. For taxable years ending before | ||||||
22 | December 31, 2008, business income of a financial
| ||||||
23 | organization shall be apportioned to this State by | ||||||
24 | multiplying such
income by a fraction, the numerator of | ||||||
25 | which is its business income from
sources within this | ||||||
26 | State, and the denominator of which is its business
income |
| |||||||
| |||||||
1 | from all sources. For the purposes of this subsection, the
| ||||||
2 | business income of a financial organization from sources | ||||||
3 | within this
State is the sum of the amounts referred to in | ||||||
4 | subparagraphs (A) through
(E) following, but excluding the | ||||||
5 | adjusted income of an international banking
facility as | ||||||
6 | determined in paragraph (2):
| ||||||
7 | (A) Fees, commissions or other compensation for | ||||||
8 | financial services
rendered within this State;
| ||||||
9 | (B) Gross profits from trading in stocks, bonds or | ||||||
10 | other securities
managed within this State;
| ||||||
11 | (C) Dividends, and interest from Illinois | ||||||
12 | customers, which are received
within this State;
| ||||||
13 | (D) Interest charged to customers at places of | ||||||
14 | business maintained
within this State for carrying | ||||||
15 | debit balances of margin accounts,
without deduction | ||||||
16 | of any costs incurred in carrying such accounts; and
| ||||||
17 | (E) Any other gross income resulting from the | ||||||
18 | operation as a
financial organization within this | ||||||
19 | State. | ||||||
20 | In computing the amounts
referred to in paragraphs (A) | ||||||
21 | through (E) of this subsection, any amount
received by a | ||||||
22 | member of an affiliated group (determined under Section
| ||||||
23 | 1504(a) of the Internal Revenue Code but without reference | ||||||
24 | to whether
any such corporation is an "includible | ||||||
25 | corporation" under Section
1504(b) of the Internal Revenue | ||||||
26 | Code) from another member of such group
shall be included |
| |||||||
| |||||||
1 | only to the extent such amount exceeds expenses of the
| ||||||
2 | recipient directly related thereto.
| ||||||
3 | (2) International Banking Facility. For taxable years | ||||||
4 | ending before December 31, 2008:
| ||||||
5 | (A) Adjusted Income. The adjusted income of an | ||||||
6 | international banking
facility is its income reduced | ||||||
7 | by the amount of the floor amount.
| ||||||
8 | (B) Floor Amount. The floor amount shall be the | ||||||
9 | amount, if any,
determined
by multiplying the income | ||||||
10 | of the international banking facility by a fraction,
| ||||||
11 | not greater than one, which is determined as follows:
| ||||||
12 | (i) The numerator shall be:
| ||||||
13 | The average aggregate, determined on a | ||||||
14 | quarterly basis, of the
financial
organization's | ||||||
15 | loans to banks in foreign countries, to foreign | ||||||
16 | domiciled
borrowers (except where secured | ||||||
17 | primarily by real estate) and to foreign
| ||||||
18 | governments and other foreign official | ||||||
19 | institutions, as reported for its
branches, | ||||||
20 | agencies and offices within the state on its | ||||||
21 | "Consolidated Report
of Condition", Schedule A, | ||||||
22 | Lines 2.c., 5.b., and 7.a., which was filed with
| ||||||
23 | the Federal Deposit Insurance Corporation and | ||||||
24 | other regulatory authorities,
for the year 1980, | ||||||
25 | minus
| ||||||
26 | The average aggregate, determined on a |
| |||||||
| |||||||
1 | quarterly basis, of such loans
(other
than loans | ||||||
2 | of an international banking facility), as reported | ||||||
3 | by the financial
institution for its branches, | ||||||
4 | agencies and offices within the state, on
the | ||||||
5 | corresponding Schedule and lines of the | ||||||
6 | Consolidated Report of Condition
for the current | ||||||
7 | taxable year, provided, however, that in no case | ||||||
8 | shall the
amount determined in this clause (the | ||||||
9 | subtrahend) exceed the amount determined
in the | ||||||
10 | preceding clause (the minuend); and
| ||||||
11 | (ii) the denominator shall be the average | ||||||
12 | aggregate, determined on a
quarterly basis, of the | ||||||
13 | international banking facility's loans to banks in
| ||||||
14 | foreign countries, to foreign domiciled borrowers | ||||||
15 | (except where secured
primarily by real estate) | ||||||
16 | and to foreign governments and other foreign
| ||||||
17 | official institutions, which were recorded in its | ||||||
18 | financial accounts for
the current taxable year.
| ||||||
19 | (C) Change to Consolidated Report of Condition and | ||||||
20 | in Qualification.
In the event the Consolidated Report | ||||||
21 | of Condition which is filed with the
Federal Deposit | ||||||
22 | Insurance Corporation and other regulatory authorities | ||||||
23 | is
altered so that the information required for | ||||||
24 | determining the floor amount
is not found on Schedule | ||||||
25 | A, lines 2.c., 5.b. and 7.a., the financial
| ||||||
26 | institution shall notify the Department and the |
| |||||||
| |||||||
1 | Department may, by
regulations or otherwise, prescribe | ||||||
2 | or authorize the use of an alternative
source for such | ||||||
3 | information. The financial institution shall also | ||||||
4 | notify
the Department should its international banking | ||||||
5 | facility fail to qualify as
such, in whole or in part, | ||||||
6 | or should there be any amendment or change to
the | ||||||
7 | Consolidated Report of Condition, as originally filed, | ||||||
8 | to the extent
such amendment or change alters the | ||||||
9 | information used in determining the floor
amount.
| ||||||
10 | (3) For taxable years ending on or after December 31, | ||||||
11 | 2008, the business income of a financial organization | ||||||
12 | shall be apportioned to this State by multiplying such | ||||||
13 | income by a fraction, the numerator of which is its gross | ||||||
14 | receipts from sources in this State or otherwise | ||||||
15 | attributable to this State's marketplace and the | ||||||
16 | denominator of which is its gross receipts everywhere | ||||||
17 | during the taxable year. "Gross receipts" for purposes of | ||||||
18 | this subparagraph (3) means gross income, including net | ||||||
19 | taxable gain on disposition of assets, including | ||||||
20 | securities and money market instruments, when derived from | ||||||
21 | transactions and activities in the regular course of the | ||||||
22 | financial organization's trade or business. The following | ||||||
23 | examples are illustrative:
| ||||||
24 | (i) Receipts from the lease or rental of real or | ||||||
25 | tangible personal property are in this State if the | ||||||
26 | property is located in this State during the rental |
| |||||||
| |||||||
1 | period. Receipts from the lease or rental of tangible | ||||||
2 | personal property that is characteristically moving | ||||||
3 | property, including, but not limited to, motor | ||||||
4 | vehicles, rolling stock, aircraft, vessels, or mobile | ||||||
5 | equipment are from sources in this State to the extent | ||||||
6 | that the property is used in this State. | ||||||
7 | (ii) Interest income, commissions, fees, gains on | ||||||
8 | disposition, and other receipts from assets in the | ||||||
9 | nature of loans that are secured primarily by real | ||||||
10 | estate or tangible personal property are from sources | ||||||
11 | in this State if the security is located in this State. | ||||||
12 | (iii) Interest income, commissions, fees, gains on | ||||||
13 | disposition, and other receipts from consumer loans | ||||||
14 | that are not secured by real or tangible personal | ||||||
15 | property are from sources in this State if the debtor | ||||||
16 | is a resident of this State. | ||||||
17 | (iv) Interest income, commissions, fees, gains on | ||||||
18 | disposition, and other receipts from commercial loans | ||||||
19 | and installment obligations that are not secured by | ||||||
20 | real or tangible personal property are from sources in | ||||||
21 | this State if the proceeds of the loan are to be | ||||||
22 | applied in this State. If it cannot be determined | ||||||
23 | where the funds are to be applied, the income and | ||||||
24 | receipts are from sources in this State if the office | ||||||
25 | of the borrower from which the loan was negotiated in | ||||||
26 | the regular course of business is located in this |
| |||||||
| |||||||
1 | State. If the location of this office cannot be | ||||||
2 | determined, the income and receipts shall be excluded | ||||||
3 | from the numerator and denominator of the sales | ||||||
4 | factor.
| ||||||
5 | (v) Interest income, fees, gains on disposition, | ||||||
6 | service charges, merchant discount income, and other | ||||||
7 | receipts from credit card receivables are from sources | ||||||
8 | in this State if the card charges are regularly billed | ||||||
9 | to a customer in this State. | ||||||
10 | (vi) Receipts from the performance of services, | ||||||
11 | including, but not limited to, fiduciary, advisory, | ||||||
12 | and brokerage services, are in this State if the | ||||||
13 | services are received in this State within the meaning | ||||||
14 | of subparagraph (a)(3)(C-5)(iv) of this Section. | ||||||
15 | (vii) Receipts from the issuance of travelers | ||||||
16 | checks and money orders are from sources in this State | ||||||
17 | if the checks and money orders are issued from a | ||||||
18 | location within this State. | ||||||
19 | (viii) Receipts from investment assets and | ||||||
20 | activities and trading assets and activities are | ||||||
21 | included in the receipts factor as follows: | ||||||
22 | (1) Interest, dividends, net gains (but not | ||||||
23 | less than zero) and other income from investment | ||||||
24 | assets and activities from trading assets and | ||||||
25 | activities shall be included in the receipts | ||||||
26 | factor. Investment assets and activities and |
| |||||||
| |||||||
1 | trading assets and activities include , but are not | ||||||
2 | limited to: investment securities; trading account | ||||||
3 | assets; federal funds; securities purchased and | ||||||
4 | sold under agreements to resell or repurchase; | ||||||
5 | options; futures contracts; forward contracts; | ||||||
6 | notional principal contracts such as swaps; | ||||||
7 | equities; and foreign currency transactions. With | ||||||
8 | respect to the investment and trading assets and | ||||||
9 | activities described in subparagraphs (A) and (B) | ||||||
10 | of this paragraph, the receipts factor shall | ||||||
11 | include the amounts described in such | ||||||
12 | subparagraphs. | ||||||
13 | (A) The receipts factor shall include the | ||||||
14 | amount by which interest from federal funds | ||||||
15 | sold and securities purchased under resale | ||||||
16 | agreements exceeds interest expense on federal | ||||||
17 | funds purchased and securities sold under | ||||||
18 | repurchase agreements. | ||||||
19 | (B) The receipts factor shall include the | ||||||
20 | amount by which interest, dividends, gains and | ||||||
21 | other income from trading assets and | ||||||
22 | activities, including , but not limited to , | ||||||
23 | assets and activities in the matched book, in | ||||||
24 | the arbitrage book, and foreign currency | ||||||
25 | transactions, exceed amounts paid in lieu of | ||||||
26 | interest, amounts paid in lieu of dividends, |
| |||||||
| |||||||
1 | and losses from such assets and activities. | ||||||
2 | (2) The numerator of the receipts factor | ||||||
3 | includes interest, dividends, net gains (but not | ||||||
4 | less than zero), and other income from investment | ||||||
5 | assets and activities and from trading assets and | ||||||
6 | activities described in paragraph (1) of this | ||||||
7 | subsection that are attributable to this State. | ||||||
8 | (A) The amount of interest, dividends, net | ||||||
9 | gains (but not less than zero), and other | ||||||
10 | income from investment assets and activities | ||||||
11 | in the investment account to be attributed to | ||||||
12 | this State and included in the numerator is | ||||||
13 | determined by multiplying all such income from | ||||||
14 | such assets and activities by a fraction, the | ||||||
15 | numerator of which is the gross income from | ||||||
16 | such assets and activities which are properly | ||||||
17 | assigned to a fixed place of business of the | ||||||
18 | taxpayer within this State and the denominator | ||||||
19 | of which is the gross income from all such | ||||||
20 | assets and activities. | ||||||
21 | (B) The amount of interest from federal | ||||||
22 | funds sold and purchased and from securities | ||||||
23 | purchased under resale agreements and | ||||||
24 | securities sold under repurchase agreements | ||||||
25 | attributable to this State and included in the | ||||||
26 | numerator is determined by multiplying the |
| |||||||
| |||||||
1 | amount described in subparagraph (A) of | ||||||
2 | paragraph (1) of this subsection from such | ||||||
3 | funds and such securities by a fraction, the | ||||||
4 | numerator of which is the gross income from | ||||||
5 | such funds and such securities which are | ||||||
6 | properly assigned to a fixed place of business | ||||||
7 | of the taxpayer within this State and the | ||||||
8 | denominator of which is the gross income from | ||||||
9 | all such funds and such securities. | ||||||
10 | (C) The amount of interest, dividends, | ||||||
11 | gains, and other income from trading assets | ||||||
12 | and activities, including , but not limited to , | ||||||
13 | assets and activities in the matched book, in | ||||||
14 | the arbitrage book and foreign currency | ||||||
15 | transactions (but excluding amounts described | ||||||
16 | in subparagraphs (A) or (B) of this | ||||||
17 | paragraph), attributable to this State and | ||||||
18 | included in the numerator is determined by | ||||||
19 | multiplying the amount described in | ||||||
20 | subparagraph (B) of paragraph (1) of this | ||||||
21 | subsection by a fraction, the numerator of | ||||||
22 | which is the gross income from such trading | ||||||
23 | assets and activities which are properly | ||||||
24 | assigned to a fixed place of business of the | ||||||
25 | taxpayer within this State and the denominator | ||||||
26 | of which is the gross income from all such |
| |||||||
| |||||||
1 | assets and activities. | ||||||
2 | (D) Properly assigned, for purposes of | ||||||
3 | this paragraph (2) of this subsection, means | ||||||
4 | the investment or trading asset or activity is | ||||||
5 | assigned to the fixed place of business with | ||||||
6 | which it has a preponderance of substantive | ||||||
7 | contacts. An investment or trading asset or | ||||||
8 | activity assigned by the taxpayer to a fixed | ||||||
9 | place of business without the State shall be | ||||||
10 | presumed to have been properly assigned if: | ||||||
11 | (i) the taxpayer has assigned, in the | ||||||
12 | regular course of its business, such asset | ||||||
13 | or activity on its records to a fixed | ||||||
14 | place of business consistent with federal | ||||||
15 | or state regulatory requirements; | ||||||
16 | (ii) such assignment on its records is | ||||||
17 | based upon substantive contacts of the | ||||||
18 | asset or activity to such fixed place of | ||||||
19 | business; and | ||||||
20 | (iii) the taxpayer uses such records | ||||||
21 | reflecting assignment of such assets or | ||||||
22 | activities for the filing of all state and | ||||||
23 | local tax returns for which an assignment | ||||||
24 | of such assets or activities to a fixed | ||||||
25 | place of business is required. | ||||||
26 | (E) The presumption of proper assignment |
| |||||||
| |||||||
1 | of an investment or trading asset or activity | ||||||
2 | provided in subparagraph (D) of paragraph (2) | ||||||
3 | of this subsection may be rebutted upon a | ||||||
4 | showing by the Department, supported by a | ||||||
5 | preponderance of the evidence, that the | ||||||
6 | preponderance of substantive contacts | ||||||
7 | regarding such asset or activity did not occur | ||||||
8 | at the fixed place of business to which it was | ||||||
9 | assigned on the taxpayer's records. If the | ||||||
10 | fixed place of business that has a | ||||||
11 | preponderance of substantive contacts cannot | ||||||
12 | be determined for an investment or trading | ||||||
13 | asset or activity to which the presumption in | ||||||
14 | subparagraph (D) of paragraph (2) of this | ||||||
15 | subsection does not apply or with respect to | ||||||
16 | which that presumption has been rebutted, that | ||||||
17 | asset or activity is properly assigned to the | ||||||
18 | state in which the taxpayer's commercial | ||||||
19 | domicile is located. For purposes of this | ||||||
20 | subparagraph (E), it shall be presumed, | ||||||
21 | subject to rebuttal, that taxpayer's | ||||||
22 | commercial domicile is in the state of the | ||||||
23 | United States or the District of Columbia to | ||||||
24 | which the greatest number of employees are | ||||||
25 | regularly connected with the management of the | ||||||
26 | investment or trading income or out of which |
| |||||||
| |||||||
1 | they are working, irrespective of where the | ||||||
2 | services of such employees are performed, as | ||||||
3 | of the last day of the taxable year.
| ||||||
4 | (4) (Blank). | ||||||
5 | (5) (Blank). | ||||||
6 | (c-1) Federally regulated exchanges. For taxable years | ||||||
7 | ending on or after December 31, 2012 and ending on or before | ||||||
8 | December 31, 2021 , business income of a federally regulated | ||||||
9 | exchange shall, at the option of the federally regulated | ||||||
10 | exchange, be apportioned to this State by multiplying such | ||||||
11 | income by a fraction, the numerator of which is its business | ||||||
12 | income from sources within this State, and the denominator of | ||||||
13 | which is its business income from all sources. For purposes of | ||||||
14 | this subsection, the business income within this State of a | ||||||
15 | federally regulated exchange is the sum of the following: | ||||||
16 | (1) Receipts attributable to transactions executed on | ||||||
17 | a physical trading floor if that physical trading floor is | ||||||
18 | located in this State. | ||||||
19 | (2) Receipts attributable to all other matching, | ||||||
20 | execution, or clearing transactions, including without | ||||||
21 | limitation receipts from the provision of matching, | ||||||
22 | execution, or clearing services to another entity, | ||||||
23 | multiplied by (i) for taxable years ending on or after | ||||||
24 | December 31, 2012 but before December 31, 2013, 63.77%; | ||||||
25 | and (ii) for taxable years ending on or after December 31, | ||||||
26 | 2013, 27.54%. |
| |||||||
| |||||||
1 | (3) All other receipts not governed by subparagraphs | ||||||
2 | (1) or (2) of this subsection (c-1), to the extent the | ||||||
3 | receipts would be characterized as "sales in this State" | ||||||
4 | under item (3) of subsection (a) of this Section. | ||||||
5 | "Federally regulated exchange" means (i) a "registered | ||||||
6 | entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B), | ||||||
7 | or (C), (ii) an "exchange" or "clearing agency" within the | ||||||
8 | meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such | ||||||
9 | entities regulated under any successor regulatory structure to | ||||||
10 | the foregoing, and (iv) all taxpayers who are members of the | ||||||
11 | same unitary business group as a federally regulated exchange, | ||||||
12 | determined without regard to the prohibition in Section | ||||||
13 | 1501(a)(27) of this Act against including in a unitary | ||||||
14 | business group taxpayers who are ordinarily required to | ||||||
15 | apportion business income under different subsections of this | ||||||
16 | Section; provided that this subparagraph (iv) shall apply only | ||||||
17 | if 50% or more of the business receipts of the unitary business | ||||||
18 | group determined by application of this subparagraph (iv) for | ||||||
19 | the taxable year are attributable to the matching, execution, | ||||||
20 | or clearing of transactions conducted by an entity described | ||||||
21 | in subparagraph (i), (ii), or (iii) of this paragraph. | ||||||
22 | In no event shall the Illinois apportionment percentage | ||||||
23 | computed in accordance with this subsection (c-1) for any | ||||||
24 | taxpayer for any tax year be less than the Illinois | ||||||
25 | apportionment percentage computed under this subsection (c-1) | ||||||
26 | for that taxpayer for the first full tax year ending on or |
| |||||||
| |||||||
1 | after December 31, 2013 for which this subsection (c-1) | ||||||
2 | applied to the taxpayer. | ||||||
3 | (d) Transportation services. For taxable years ending | ||||||
4 | before December 31, 2008, business income derived from | ||||||
5 | furnishing
transportation services shall be apportioned to | ||||||
6 | this State in accordance
with paragraphs (1) and (2):
| ||||||
7 | (1) Such business income (other than that derived from
| ||||||
8 | transportation by pipeline) shall be apportioned to this | ||||||
9 | State by
multiplying such income by a fraction, the | ||||||
10 | numerator of which is the
revenue miles of the person in | ||||||
11 | this State, and the denominator of which
is the revenue | ||||||
12 | miles of the person everywhere. For purposes of this
| ||||||
13 | paragraph, a revenue mile is the transportation of 1 | ||||||
14 | passenger or 1 net
ton of freight the distance of 1 mile | ||||||
15 | for a consideration. Where a
person is engaged in the | ||||||
16 | transportation of both passengers and freight,
the | ||||||
17 | fraction above referred to shall be determined by means of | ||||||
18 | an
average of the passenger revenue mile fraction and the | ||||||
19 | freight revenue
mile fraction, weighted to reflect the | ||||||
20 | person's
| ||||||
21 | (A) relative railway operating income from total | ||||||
22 | passenger and total
freight service, as reported to | ||||||
23 | the Interstate Commerce Commission, in
the case of | ||||||
24 | transportation by railroad, and
| ||||||
25 | (B) relative gross receipts from passenger and | ||||||
26 | freight
transportation, in case of transportation |
| |||||||
| |||||||
1 | other than by railroad.
| ||||||
2 | (2) Such business income derived from transportation | ||||||
3 | by pipeline
shall be apportioned to this State by | ||||||
4 | multiplying such income by a
fraction, the numerator of | ||||||
5 | which is the revenue miles of the person in
this State, and | ||||||
6 | the denominator of which is the revenue miles of the
| ||||||
7 | person everywhere. For the purposes of this paragraph, a | ||||||
8 | revenue mile is
the transportation by pipeline of 1 barrel | ||||||
9 | of oil, 1,000 cubic feet of
gas, or of any specified | ||||||
10 | quantity of any other substance, the distance
of 1 mile | ||||||
11 | for a consideration.
| ||||||
12 | (3) For taxable years ending on or after December 31, | ||||||
13 | 2008, business income derived from providing | ||||||
14 | transportation services other than airline services shall | ||||||
15 | be apportioned to this State by using a fraction, (a) the | ||||||
16 | numerator of which shall be (i) all receipts from any | ||||||
17 | movement or shipment of people, goods, mail, oil, gas, or | ||||||
18 | any other substance (other than by airline) that both | ||||||
19 | originates and terminates in this State, plus (ii) that | ||||||
20 | portion of the person's gross receipts from movements or | ||||||
21 | shipments of people, goods, mail, oil, gas, or any other | ||||||
22 | substance (other than by airline) that originates in one | ||||||
23 | state or jurisdiction and terminates in another state or | ||||||
24 | jurisdiction, that is determined by the ratio that the | ||||||
25 | miles traveled in this State bears to total miles | ||||||
26 | everywhere and (b) the denominator of which shall be all |
| |||||||
| |||||||
1 | revenue derived from the movement or shipment of people, | ||||||
2 | goods, mail, oil, gas, or any other substance (other than | ||||||
3 | by airline). Where a taxpayer is engaged in the | ||||||
4 | transportation of both passengers and freight, the | ||||||
5 | fraction above referred to shall first be determined | ||||||
6 | separately for passenger miles and freight miles. Then an | ||||||
7 | average of the passenger miles fraction and the freight | ||||||
8 | miles fraction shall be weighted to reflect the | ||||||
9 | taxpayer's: | ||||||
10 | (A) relative railway operating income from total | ||||||
11 | passenger and total freight service, as reported to | ||||||
12 | the Surface Transportation Board, in the case of | ||||||
13 | transportation by railroad; and | ||||||
14 | (B) relative gross receipts from passenger and | ||||||
15 | freight transportation, in case of transportation | ||||||
16 | other than by railroad.
| ||||||
17 | (4) For taxable years ending on or after December 31, | ||||||
18 | 2008, business income derived from furnishing airline
| ||||||
19 | transportation services shall be apportioned to this State | ||||||
20 | by
multiplying such income by a fraction, the numerator of | ||||||
21 | which is the
revenue miles of the person in this State, and | ||||||
22 | the denominator of which
is the revenue miles of the | ||||||
23 | person everywhere. For purposes of this
paragraph, a | ||||||
24 | revenue mile is the transportation of one passenger or one | ||||||
25 | net
ton of freight the distance of one mile for a | ||||||
26 | consideration. If a
person is engaged in the |
| |||||||
| |||||||
1 | transportation of both passengers and freight,
the | ||||||
2 | fraction above referred to shall be determined by means of | ||||||
3 | an
average of the passenger revenue mile fraction and the | ||||||
4 | freight revenue
mile fraction, weighted to reflect the | ||||||
5 | person's relative gross receipts from passenger and | ||||||
6 | freight
airline transportation.
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7 | (e) Combined apportionment. Where 2 or more persons are | ||||||
8 | engaged in
a unitary business as described in subsection | ||||||
9 | (a)(27) of
Section 1501,
a part of which is conducted in this | ||||||
10 | State by one or more members of the
group, the business income | ||||||
11 | attributable to this State by any such member
or members shall | ||||||
12 | be apportioned by means of the combined apportionment method.
| ||||||
13 | (f) Alternative allocation. If the allocation and | ||||||
14 | apportionment
provisions of subsections (a) through (e) and of | ||||||
15 | subsection (h) do not, for taxable years ending before | ||||||
16 | December 31, 2008, fairly represent the
extent of a person's | ||||||
17 | business activity in this State, or, for taxable years ending | ||||||
18 | on or after December 31, 2008, fairly represent the market for | ||||||
19 | the person's goods, services, or other sources of business | ||||||
20 | income, the person may
petition for, or the Director may, | ||||||
21 | without a petition, permit or require, in respect of all or any | ||||||
22 | part
of the person's business activity, if reasonable:
| ||||||
23 | (1) Separate accounting;
| ||||||
24 | (2) The exclusion of any one or more factors;
| ||||||
25 | (3) The inclusion of one or more additional factors | ||||||
26 | which will
fairly represent the person's business |
| |||||||
| |||||||
1 | activities or market in this State; or
| ||||||
2 | (4) The employment of any other method to effectuate | ||||||
3 | an equitable
allocation and apportionment of the person's | ||||||
4 | business income.
| ||||||
5 | (g) Cross reference. For allocation of business income by | ||||||
6 | residents,
see Section 301(a).
| ||||||
7 | (h) For tax years ending on or after December 31, 1998, the | ||||||
8 | apportionment
factor of persons who apportion their business | ||||||
9 | income to this State under
subsection (a) shall be equal to:
| ||||||
10 | (1) for tax years ending on or after December 31, 1998 | ||||||
11 | and before December
31, 1999, 16 2/3% of the property | ||||||
12 | factor plus 16 2/3% of the payroll factor
plus
66 2/3% of | ||||||
13 | the sales factor;
| ||||||
14 | (2) for tax years ending on or after December 31, 1999 | ||||||
15 | and before December
31,
2000, 8 1/3% of the property | ||||||
16 | factor plus 8 1/3% of the payroll factor plus 83
1/3%
of | ||||||
17 | the sales factor;
| ||||||
18 | (3) for tax years ending on or after December 31, | ||||||
19 | 2000, the sales factor.
| ||||||
20 | If, in any tax year ending on or after December 31, 1998 and | ||||||
21 | before December
31, 2000, the denominator of the payroll, | ||||||
22 | property, or sales factor is zero,
the apportionment
factor | ||||||
23 | computed in paragraph (1) or (2) of this subsection for that | ||||||
24 | year shall
be divided by an amount equal to 100% minus the | ||||||
25 | percentage weight given to each
factor whose denominator is | ||||||
26 | equal to zero.
|
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1 | (Source: P.A. 100-201, eff. 8-18-17; 101-31, eff. 6-28-19; | ||||||
2 | 101-585, eff. 8-26-19; revised 9-12-19.)
|