97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB6161

 

Introduced , by Rep. Monique D. Davis

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 10/13  from Ch. 120, par. 2413

    Amends the Riverboat Gambling Act. Provides that certain moneys in the State Gaming Fund shall be transferred (rather than paid) to the Horse Racing Equity Fund and Chicago State University. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Riverboat Gambling Act is amended by
5changing Section 13 as follows:
 
6    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
7    Sec. 13. Wagering tax; rate; distribution.
8    (a) Until January 1, 1998, a tax is imposed on the adjusted
9gross receipts received from gambling games authorized under
10this Act at the rate of 20%.
11    (a-1) From January 1, 1998 until July 1, 2002, a privilege
12tax is imposed on persons engaged in the business of conducting
13riverboat gambling operations, based on the adjusted gross
14receipts received by a licensed owner from gambling games
15authorized under this Act at the following rates:
16        15% of annual adjusted gross receipts up to and
17    including $25,000,000;
18        20% of annual adjusted gross receipts in excess of
19    $25,000,000 but not exceeding $50,000,000;
20        25% of annual adjusted gross receipts in excess of
21    $50,000,000 but not exceeding $75,000,000;
22        30% of annual adjusted gross receipts in excess of
23    $75,000,000 but not exceeding $100,000,000;

 

 

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1        35% of annual adjusted gross receipts in excess of
2    $100,000,000.
3    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
4is imposed on persons engaged in the business of conducting
5riverboat gambling operations, other than licensed managers
6conducting riverboat gambling operations on behalf of the
7State, based on the adjusted gross receipts received by a
8licensed owner from gambling games authorized under this Act at
9the following rates:
10        15% of annual adjusted gross receipts up to and
11    including $25,000,000;
12        22.5% of annual adjusted gross receipts in excess of
13    $25,000,000 but not exceeding $50,000,000;
14        27.5% of annual adjusted gross receipts in excess of
15    $50,000,000 but not exceeding $75,000,000;
16        32.5% of annual adjusted gross receipts in excess of
17    $75,000,000 but not exceeding $100,000,000;
18        37.5% of annual adjusted gross receipts in excess of
19    $100,000,000 but not exceeding $150,000,000;
20        45% of annual adjusted gross receipts in excess of
21    $150,000,000 but not exceeding $200,000,000;
22        50% of annual adjusted gross receipts in excess of
23    $200,000,000.
24    (a-3) Beginning July 1, 2003, a privilege tax is imposed on
25persons engaged in the business of conducting riverboat
26gambling operations, other than licensed managers conducting

 

 

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1riverboat gambling operations on behalf of the State, based on
2the adjusted gross receipts received by a licensed owner from
3gambling games authorized under this Act at the following
4rates:
5        15% of annual adjusted gross receipts up to and
6    including $25,000,000;
7        27.5% of annual adjusted gross receipts in excess of
8    $25,000,000 but not exceeding $37,500,000;
9        32.5% of annual adjusted gross receipts in excess of
10    $37,500,000 but not exceeding $50,000,000;
11        37.5% of annual adjusted gross receipts in excess of
12    $50,000,000 but not exceeding $75,000,000;
13        45% of annual adjusted gross receipts in excess of
14    $75,000,000 but not exceeding $100,000,000;
15        50% of annual adjusted gross receipts in excess of
16    $100,000,000 but not exceeding $250,000,000;
17        70% of annual adjusted gross receipts in excess of
18    $250,000,000.
19    An amount equal to the amount of wagering taxes collected
20under this subsection (a-3) that are in addition to the amount
21of wagering taxes that would have been collected if the
22wagering tax rates under subsection (a-2) were in effect shall
23be paid into the Common School Fund.
24    The privilege tax imposed under this subsection (a-3) shall
25no longer be imposed beginning on the earlier of (i) July 1,
262005; (ii) the first date after June 20, 2003 that riverboat

 

 

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1gambling operations are conducted pursuant to a dormant
2license; or (iii) the first day that riverboat gambling
3operations are conducted under the authority of an owners
4license that is in addition to the 10 owners licenses initially
5authorized under this Act. For the purposes of this subsection
6(a-3), the term "dormant license" means an owners license that
7is authorized by this Act under which no riverboat gambling
8operations are being conducted on June 20, 2003.
9    (a-4) Beginning on the first day on which the tax imposed
10under subsection (a-3) is no longer imposed, a privilege tax is
11imposed on persons engaged in the business of conducting
12riverboat gambling operations, other than licensed managers
13conducting riverboat gambling operations on behalf of the
14State, based on the adjusted gross receipts received by a
15licensed owner from gambling games authorized under this Act at
16the following rates:
17        15% of annual adjusted gross receipts up to and
18    including $25,000,000;
19        22.5% of annual adjusted gross receipts in excess of
20    $25,000,000 but not exceeding $50,000,000;
21        27.5% of annual adjusted gross receipts in excess of
22    $50,000,000 but not exceeding $75,000,000;
23        32.5% of annual adjusted gross receipts in excess of
24    $75,000,000 but not exceeding $100,000,000;
25        37.5% of annual adjusted gross receipts in excess of
26    $100,000,000 but not exceeding $150,000,000;

 

 

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1        45% of annual adjusted gross receipts in excess of
2    $150,000,000 but not exceeding $200,000,000;
3        50% of annual adjusted gross receipts in excess of
4    $200,000,000.
5    (a-8) Riverboat gambling operations conducted by a
6licensed manager on behalf of the State are not subject to the
7tax imposed under this Section.
8    (a-10) The taxes imposed by this Section shall be paid by
9the licensed owner to the Board not later than 5:00 o'clock
10p.m. of the day after the day when the wagers were made.
11    (a-15) If the privilege tax imposed under subsection (a-3)
12is no longer imposed pursuant to item (i) of the last paragraph
13of subsection (a-3), then by June 15 of each year, each owners
14licensee, other than an owners licensee that admitted 1,000,000
15persons or fewer in calendar year 2004, must, in addition to
16the payment of all amounts otherwise due under this Section,
17pay to the Board a reconciliation payment in the amount, if
18any, by which the licensed owner's base amount exceeds the
19amount of net privilege tax paid by the licensed owner to the
20Board in the then current State fiscal year. A licensed owner's
21net privilege tax obligation due for the balance of the State
22fiscal year shall be reduced up to the total of the amount paid
23by the licensed owner in its June 15 reconciliation payment.
24The obligation imposed by this subsection (a-15) is binding on
25any person, firm, corporation, or other entity that acquires an
26ownership interest in any such owners license. The obligation

 

 

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1imposed under this subsection (a-15) terminates on the earliest
2of: (i) July 1, 2007, (ii) the first day after the effective
3date of this amendatory Act of the 94th General Assembly that
4riverboat gambling operations are conducted pursuant to a
5dormant license, (iii) the first day that riverboat gambling
6operations are conducted under the authority of an owners
7license that is in addition to the 10 owners licenses initially
8authorized under this Act, or (iv) the first day that a
9licensee under the Illinois Horse Racing Act of 1975 conducts
10gaming operations with slot machines or other electronic gaming
11devices. The Board must reduce the obligation imposed under
12this subsection (a-15) by an amount the Board deems reasonable
13for any of the following reasons: (A) an act or acts of God,
14(B) an act of bioterrorism or terrorism or a bioterrorism or
15terrorism threat that was investigated by a law enforcement
16agency, or (C) a condition beyond the control of the owners
17licensee that does not result from any act or omission by the
18owners licensee or any of its agents and that poses a hazardous
19threat to the health and safety of patrons. If an owners
20licensee pays an amount in excess of its liability under this
21Section, the Board shall apply the overpayment to future
22payments required under this Section.
23    For purposes of this subsection (a-15):
24    "Act of God" means an incident caused by the operation of
25an extraordinary force that cannot be foreseen, that cannot be
26avoided by the exercise of due care, and for which no person

 

 

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1can be held liable.
2    "Base amount" means the following:
3        For a riverboat in Alton, $31,000,000.
4        For a riverboat in East Peoria, $43,000,000.
5        For the Empress riverboat in Joliet, $86,000,000.
6        For a riverboat in Metropolis, $45,000,000.
7        For the Harrah's riverboat in Joliet, $114,000,000.
8        For a riverboat in Aurora, $86,000,000.
9        For a riverboat in East St. Louis, $48,500,000.
10        For a riverboat in Elgin, $198,000,000.
11    "Dormant license" has the meaning ascribed to it in
12subsection (a-3).
13    "Net privilege tax" means all privilege taxes paid by a
14licensed owner to the Board under this Section, less all
15payments made from the State Gaming Fund pursuant to subsection
16(b) of this Section.
17    The changes made to this subsection (a-15) by Public Act
1894-839 are intended to restate and clarify the intent of Public
19Act 94-673 with respect to the amount of the payments required
20to be made under this subsection by an owners licensee to the
21Board.
22    (b) Until January 1, 1998, 25% of the tax revenue deposited
23in the State Gaming Fund under this Section shall be paid,
24subject to appropriation by the General Assembly, to the unit
25of local government which is designated as the home dock of the
26riverboat. Beginning January 1, 1998, from the tax revenue

 

 

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1deposited in the State Gaming Fund under this Section, an
2amount equal to 5% of adjusted gross receipts generated by a
3riverboat shall be paid monthly, subject to appropriation by
4the General Assembly, to the unit of local government that is
5designated as the home dock of the riverboat. From the tax
6revenue deposited in the State Gaming Fund pursuant to
7riverboat gambling operations conducted by a licensed manager
8on behalf of the State, an amount equal to 5% of adjusted gross
9receipts generated pursuant to those riverboat gambling
10operations shall be paid monthly, subject to appropriation by
11the General Assembly, to the unit of local government that is
12designated as the home dock of the riverboat upon which those
13riverboat gambling operations are conducted.
14    (c) Appropriations, as approved by the General Assembly,
15may be made from the State Gaming Fund to the Board (i) for the
16administration and enforcement of this Act and the Video Gaming
17Act, (ii) for distribution to the Department of State Police
18and to the Department of Revenue for the enforcement of this
19Act, and (iii) to the Department of Human Services for the
20administration of programs to treat problem gambling.
21    (c-5) Before May 26, 2006 (the effective date of Public Act
2294-804) and beginning on the effective date of this amendatory
23Act of the 95th General Assembly, unless any organization
24licensee under the Illinois Horse Racing Act of 1975 begins to
25operate a slot machine or video game of chance under the
26Illinois Horse Racing Act of 1975 or this Act, after the

 

 

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1payments required under subsections (b) and (c) have been made,
2an amount equal to 15% of the adjusted gross receipts of (1) an
3owners licensee that relocates pursuant to Section 11.2, (2) an
4owners licensee conducting riverboat gambling operations
5pursuant to an owners license that is initially issued after
6June 25, 1999, or (3) the first riverboat gambling operations
7conducted by a licensed manager on behalf of the State under
8Section 7.3, whichever comes first, shall be transferred paid
9from the State Gaming Fund into the Horse Racing Equity Fund.
10    (c-10) Each year the General Assembly shall appropriate
11from the General Revenue Fund to the Education Assistance Fund
12an amount equal to the amount paid into the Horse Racing Equity
13Fund pursuant to subsection (c-5) in the prior calendar year.
14    (c-15) After the payments required under subsections (b),
15(c), and (c-5) have been made, an amount equal to 2% of the
16adjusted gross receipts of (1) an owners licensee that
17relocates pursuant to Section 11.2, (2) an owners licensee
18conducting riverboat gambling operations pursuant to an owners
19license that is initially issued after June 25, 1999, or (3)
20the first riverboat gambling operations conducted by a licensed
21manager on behalf of the State under Section 7.3, whichever
22comes first, shall be paid, subject to appropriation from the
23General Assembly, from the State Gaming Fund to each home rule
24county with a population of over 3,000,000 inhabitants for the
25purpose of enhancing the county's criminal justice system.
26    (c-20) Each year the General Assembly shall appropriate

 

 

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1from the General Revenue Fund to the Education Assistance Fund
2an amount equal to the amount paid to each home rule county
3with a population of over 3,000,000 inhabitants pursuant to
4subsection (c-15) in the prior calendar year.
5    (c-25) After the payments required under subsections (b),
6(c), (c-5) and (c-15) have been made, an amount equal to 2% of
7the adjusted gross receipts of (1) an owners licensee that
8relocates pursuant to Section 11.2, (2) an owners licensee
9conducting riverboat gambling operations pursuant to an owners
10license that is initially issued after June 25, 1999, or (3)
11the first riverboat gambling operations conducted by a licensed
12manager on behalf of the State under Section 7.3, whichever
13comes first, shall be transferred paid from the State Gaming
14Fund to Chicago State University.
15    (d) From time to time, the Board shall transfer the
16remainder of the funds generated by this Act into the Education
17Assistance Fund, created by Public Act 86-0018, of the State of
18Illinois.
19    (e) Nothing in this Act shall prohibit the unit of local
20government designated as the home dock of the riverboat from
21entering into agreements with other units of local government
22in this State or in other states to share its portion of the
23tax revenue.
24    (f) To the extent practicable, the Board shall administer
25and collect the wagering taxes imposed by this Section in a
26manner consistent with the provisions of Sections 4, 5, 5a, 5b,

 

 

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15c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
2Retailers' Occupation Tax Act and Section 3-7 of the Uniform
3Penalty and Interest Act.
4(Source: P.A. 95-331, eff. 8-21-07; 95-1008, eff. 12-15-08;
596-37, eff. 7-13-09; 96-1392, eff. 1-1-11.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.