97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3548

 

Introduced 2/24/2011, by Rep. Mary E. Flowers

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Financial Transaction Tax Act. Beginning September 1, 2011, imposes a tax on the privilege of engaging in a financial transaction on any of the following exchanges or boards of trade: the Chicago Stock Exchange, the Chicago Mercantile Exchange, the Chicago Board of Trade, and the Chicago Board Options Exchange. Provides that the tax is imposed at a rate of 0.01% of the value of the transaction. Provides that the term "financial transaction" means a transaction involving the purchase or sale of a stock contract, futures contract, swap contract, credit default swap contract, or options contract, but does not include a transaction involving securities held in a retirement account or a transaction involving a mutual fund. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3548LRB097 09806 HLH 49955 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Financial Transaction Tax Act.
 
6    Section 5. Tax imposed; definitions.
7    (a) Beginning September 1, 2011, a tax is imposed on the
8privilege of engaging in a financial transaction on any of the
9following exchanges or boards of trade: the Chicago Stock
10Exchange, the Chicago Mercantile Exchange, the Chicago Board of
11Trade, and the Chicago Board Options Exchange. The tax is
12imposed at a rate of 0.01% of the value of the transaction. The
13tax shall be paid by the trading facility or, in any other
14case, by the purchaser involved in the transaction.
15    (b) A tax imposed under this Act, and all civil penalties
16that may be assessed as an incident thereof, shall be
17administered, collected, and enforced by the Illinois
18Department of Revenue, and commodity brokers shall register
19with the Department, in the same manner as required under the
20Retailers' Occupation Tax Act insofar as may be applicable. The
21Department of Revenue has full power to administer and enforce
22this Act, to collect all taxes and penalties due under this
23Act, to dispose of taxes and penalties so collected as provided

 

 

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1in this Act, and to determine all rights to credit memoranda
2arising on account of the erroneous payment of tax or penalty
3under this Act. The Department of Revenue shall pay over to the
4State Treasurer all taxes and penalties collected under this
5Act for deposit into the General Revenue Fund.
6    For the purpose of this Act, "financial transaction" means
7a transaction involving the purchase or sale of a stock
8contract, futures contract, swap contract, credit default swap
9contract, or options contract, but does not include a
10transaction involving securities held in a retirement account
11or a transaction involving a mutual fund.
 
12    Section 10. Rules. The Department shall adopt
13administrative rules to implement and administer this Act.
14Initial rules may be adopted as emergency rules.
 
15    Section 15. Interstate commerce exemption. No tax is
16imposed under this Act upon the privilege of engaging in a
17business in interstate commerce or otherwise when the business
18may not, under the Constitution and statutes of the United
19States, be made the subject of taxation by this State.
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.