Sen. Toi W. Hutchinson

Filed: 3/6/2019

 

 


 

 


 
10100SB1515sam001LRB101 08648 HLH 57006 a

1
AMENDMENT TO SENATE BILL 1515

2    AMENDMENT NO. ______. Amend Senate Bill 1515 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. The base income of an
9organization which is exempt from the federal income tax by
10reason of the Internal Revenue Code shall not be determined
11under section 203 of this Act, but shall be its unrelated
12business taxable income as determined under section 512 of the
13Internal Revenue Code, without any deduction for the tax
14imposed by this Act. For tax years beginning on or after
15January 1, 2019, the unrelated business taxable income of such
16an organization shall not include amounts that are included in

 

 

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1the taxpayer's federal adjusted gross income as as result of
2the application of Section 512(a)(7) of the Internal Revenue
3Code; this exclusion is exempt from the provisions of Section
4250. The standard exemption provided by section 204 of this Act
5shall not be allowed in determining the net income of an
6organization to which this subsection applies.
7    (b) Partnerships. A partnership as such shall not be
8subject to the tax imposed by subsection 201 (a) and (b) of
9this Act, but shall be subject to the replacement tax imposed
10by subsection 201 (c) and (d) of this Act and shall compute its
11base income as described in subsection (d) of Section 203 of
12this Act. For taxable years ending on or after December 31,
132004, an investment partnership, as defined in Section
141501(a)(11.5) of this Act, shall not be subject to the tax
15imposed by subsections (c) and (d) of Section 201 of this Act.
16A partnership shall file such returns and other information at
17such time and in such manner as may be required under Article 5
18of this Act. The partners in a partnership shall be liable for
19the replacement tax imposed by subsection 201 (c) and (d) of
20this Act on such partnership, to the extent such tax is not
21paid by the partnership, as provided under the laws of Illinois
22governing the liability of partners for the obligations of a
23partnership. Persons carrying on business as partners shall be
24liable for the tax imposed by subsection 201 (a) and (b) of
25this Act only in their separate or individual capacities.
26    (c) Subchapter S corporations. A Subchapter S corporation

 

 

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1shall not be subject to the tax imposed by subsection 201 (a)
2and (b) of this Act but shall be subject to the replacement tax
3imposed by subsection 201 (c) and (d) of this Act and shall
4file such returns and other information at such time and in
5such manner as may be required under Article 5 of this Act.
6    (d) Combat zone, terrorist attack, and certain other
7deaths. An individual relieved from the federal income tax for
8any taxable year by reason of section 692 of the Internal
9Revenue Code shall not be subject to the tax imposed by this
10Act for such taxable year.
11    (e) Certain trusts. A common trust fund described in
12Section 584 of the Internal Revenue Code, and any other trust
13to the extent that the grantor is treated as the owner thereof
14under sections 671 through 678 of the Internal Revenue Code
15shall not be subject to the tax imposed by this Act.
16    (f) Certain business activities. A person not otherwise
17subject to the tax imposed by this Act shall not become subject
18to the tax imposed by this Act by reason of:
19        (1) that person's ownership of tangible personal
20    property located at the premises of a printer in this State
21    with which the person has contracted for printing, or
22        (2) activities of the person's employees or agents
23    located solely at the premises of a printer and related to
24    quality control, distribution, or printing services
25    performed by a printer in the State with which the person
26    has contracted for printing.

 

 

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1    (g) A nonprofit risk organization that holds a certificate
2of authority under Article VIID of the Illinois Insurance Code
3is exempt from the tax imposed under this Act with respect to
4its activities or operations in furtherance of the powers
5conferred upon it under that Article VIID of the Illinois
6Insurance Code.
7(Source: P.A. 97-507, eff. 8-23-11.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.".