Rep. Michael J. Zalewski

Filed: 5/24/2019

 

 


 

 


 
10100SB1257ham001LRB101 09340 HLH 61141 a

1
AMENDMENT TO SENATE BILL 1257

2    AMENDMENT NO. ______. Amend Senate Bill 1257 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Income Tax Act is amended by
5changing Section 205 as follows:
 
6    (35 ILCS 5/205)  (from Ch. 120, par. 2-205)
7    Sec. 205. Exempt organizations.
8    (a) Charitable, etc. organizations. For tax years
9beginning before January 1, 2019, the The base income of an
10organization which is exempt from the federal income tax by
11reason of the Internal Revenue Code shall not be determined
12under section 203 of this Act, but shall be its unrelated
13business taxable income as determined under section 512 of the
14Internal Revenue Code, without any deduction for the tax
15imposed by this Act. The standard exemption provided by section
16204 of this Act shall not be allowed in determining the net

 

 

10100SB1257ham001- 2 -LRB101 09340 HLH 61141 a

1income of an organization to which this subsection applies.
2    For tax years beginning on or after January 1, 2019, the
3base income of an organization which is exempt from the federal
4income tax by reason of the Internal Revenue Code shall not be
5determined under Section 203 of this Act, but shall be its
6unrelated business taxable income as determined under Section
7512 of the Internal Revenue Code, without regard to Section
8512(a)(7) of the Internal Revenue Code and without any
9deduction for the tax imposed by this Act. The standard
10exemption provided by Section 204 of this Act shall not be
11allowed in determining the net income of an organization to
12which this subsection applies. This exclusion is exempt from
13the provisions of Section 250.
14    (b) Partnerships. A partnership as such shall not be
15subject to the tax imposed by subsection 201 (a) and (b) of
16this Act, but shall be subject to the replacement tax imposed
17by subsection 201 (c) and (d) of this Act and shall compute its
18base income as described in subsection (d) of Section 203 of
19this Act. For taxable years ending on or after December 31,
202004, an investment partnership, as defined in Section
211501(a)(11.5) of this Act, shall not be subject to the tax
22imposed by subsections (c) and (d) of Section 201 of this Act.
23A partnership shall file such returns and other information at
24such time and in such manner as may be required under Article 5
25of this Act. The partners in a partnership shall be liable for
26the replacement tax imposed by subsection 201 (c) and (d) of

 

 

10100SB1257ham001- 3 -LRB101 09340 HLH 61141 a

1this Act on such partnership, to the extent such tax is not
2paid by the partnership, as provided under the laws of Illinois
3governing the liability of partners for the obligations of a
4partnership. Persons carrying on business as partners shall be
5liable for the tax imposed by subsection 201 (a) and (b) of
6this Act only in their separate or individual capacities.
7    (c) Subchapter S corporations. A Subchapter S corporation
8shall not be subject to the tax imposed by subsection 201 (a)
9and (b) of this Act but shall be subject to the replacement tax
10imposed by subsection 201 (c) and (d) of this Act and shall
11file such returns and other information at such time and in
12such manner as may be required under Article 5 of this Act.
13    (d) Combat zone, terrorist attack, and certain other
14deaths. An individual relieved from the federal income tax for
15any taxable year by reason of section 692 of the Internal
16Revenue Code shall not be subject to the tax imposed by this
17Act for such taxable year.
18    (e) Certain trusts. A common trust fund described in
19Section 584 of the Internal Revenue Code, and any other trust
20to the extent that the grantor is treated as the owner thereof
21under sections 671 through 678 of the Internal Revenue Code
22shall not be subject to the tax imposed by this Act.
23    (f) Certain business activities. A person not otherwise
24subject to the tax imposed by this Act shall not become subject
25to the tax imposed by this Act by reason of:
26        (1) that person's ownership of tangible personal

 

 

10100SB1257ham001- 4 -LRB101 09340 HLH 61141 a

1    property located at the premises of a printer in this State
2    with which the person has contracted for printing, or
3        (2) activities of the person's employees or agents
4    located solely at the premises of a printer and related to
5    quality control, distribution, or printing services
6    performed by a printer in the State with which the person
7    has contracted for printing.
8    (g) A nonprofit risk organization that holds a certificate
9of authority under Article VIID of the Illinois Insurance Code
10is exempt from the tax imposed under this Act with respect to
11its activities or operations in furtherance of the powers
12conferred upon it under that Article VIID of the Illinois
13Insurance Code.
14(Source: P.A. 97-507, eff. 8-23-11.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.".