98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3663

 

Introduced 5/20/2014, by Sen. Michael Noland

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 10/12  from Ch. 120, par. 2412
230 ILCS 10/13  from Ch. 120, par. 2413

    Amends the Riverboat Gambling Act. Provides that, beginning on the effective date of the amendatory Act, the admission tax shall not be imposed. Further provides that, for the purposes of the privilege tax imposed under the Act, amounts paid to qualified charities and all taxes paid to any government or municipality shall not be included in the determination of adjusted gross receipts.


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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 Sections 12 and 13 as follows:
 
6    (230 ILCS 10/12)  (from Ch. 120, par. 2412)
7    Sec. 12. Admission tax; fees.
8    (a) A tax is hereby imposed upon admissions to riverboats
9operated by licensed owners authorized pursuant to this Act.
10Until July 1, 2002, the rate is $2 per person admitted. From
11July 1, 2002 until July 1, 2003, the rate is $3 per person
12admitted. From July 1, 2003 until August 23, 2005 (the
13effective date of Public Act 94-673), for a licensee that
14admitted 1,000,000 persons or fewer in the previous calendar
15year, the rate is $3 per person admitted; for a licensee that
16admitted more than 1,000,000 but no more than 2,300,000 persons
17in the previous calendar year, the rate is $4 per person
18admitted; and for a licensee that admitted more than 2,300,000
19persons in the previous calendar year, the rate is $5 per
20person admitted. Beginning on August 23, 2005 (the effective
21date of Public Act 94-673), for a licensee that admitted
221,000,000 persons or fewer in calendar year 2004, the rate is
23$2 per person admitted, and for all other licensees, including

 

 

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1licensees that were not conducting gambling operations in 2004,
2the rate is $3 per person admitted. This admission tax is
3imposed upon the licensed owner conducting gambling.
4        (1) The admission tax shall be paid for each admission,
5    except that a person who exits a riverboat gambling
6    facility and reenters that riverboat gambling facility
7    within the same gaming day shall be subject only to the
8    initial admission tax.
9        (2) (Blank).
10        (3) The riverboat licensee may issue tax-free passes to
11    actual and necessary officials and employees of the
12    licensee or other persons actually working on the
13    riverboat.
14        (4) The number and issuance of tax-free passes is
15    subject to the rules of the Board, and a list of all
16    persons to whom the tax-free passes are issued shall be
17    filed with the Board.
18    (a-5) A fee is hereby imposed upon admissions operated by
19licensed managers on behalf of the State pursuant to Section
207.3 at the rates provided in this subsection (a-5). For a
21licensee that admitted 1,000,000 persons or fewer in the
22previous calendar year, the rate is $3 per person admitted; for
23a licensee that admitted more than 1,000,000 but no more than
242,300,000 persons in the previous calendar year, the rate is $4
25per person admitted; and for a licensee that admitted more than
262,300,000 persons in the previous calendar year, the rate is $5

 

 

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1per person admitted.
2        (1) The admission fee shall be paid for each admission.
3        (2) (Blank).
4        (3) The licensed manager may issue fee-free passes to
5    actual and necessary officials and employees of the manager
6    or other persons actually working on the riverboat.
7        (4) The number and issuance of fee-free passes is
8    subject to the rules of the Board, and a list of all
9    persons to whom the fee-free passes are issued shall be
10    filed with the Board.
11    (b) From the tax imposed under subsection (a) and the fee
12imposed under subsection (a-5), a municipality shall receive
13from the State $1 for each person embarking on a riverboat
14docked within the municipality, and a county shall receive $1
15for each person embarking on a riverboat docked within the
16county but outside the boundaries of any municipality. The
17municipality's or county's share shall be collected by the
18Board on behalf of the State and remitted quarterly by the
19State, subject to appropriation, to the treasurer of the unit
20of local government for deposit in the general fund.
21    (c) The licensed owner shall pay the entire admission tax
22to the Board and the licensed manager shall pay the entire
23admission fee to the Board. Such payments shall be made daily.
24Accompanying each payment shall be a return on forms provided
25by the Board which shall include other information regarding
26admissions as the Board may require. Failure to submit either

 

 

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1the payment or the return within the specified time may result
2in suspension or revocation of the owners or managers license.
3    (d) The Board shall administer and collect the admission
4tax imposed by this Section, to the extent practicable, in a
5manner consistent with the provisions of Sections 4, 5, 5a, 5b,
65c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9 and 10 of the
7Retailers' Occupation Tax Act and Section 3-7 of the Uniform
8Penalty and Interest Act.
9    (e) Beginning on the effective date of this amendatory Act
10of the 98th General Assembly, the admission tax under this
11Section shall not be imposed.
12(Source: P.A. 95-663, eff. 10-11-07; 96-1392, eff. 1-1-11.)
 
13    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
14    Sec. 13. Wagering tax; rate; distribution.
15    (a) Until January 1, 1998, a tax is imposed on the adjusted
16gross receipts received from gambling games authorized under
17this Act at the rate of 20%.
18    (a-1) From January 1, 1998 until July 1, 2002, a privilege
19tax is imposed on persons engaged in the business of conducting
20riverboat gambling operations, based on the adjusted gross
21receipts received by a licensed owner from gambling games
22authorized under this Act at the following rates:
23        15% of annual adjusted gross receipts up to and
24    including $25,000,000;
25        20% of annual adjusted gross receipts in excess of

 

 

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1    $25,000,000 but not exceeding $50,000,000;
2        25% of annual adjusted gross receipts in excess of
3    $50,000,000 but not exceeding $75,000,000;
4        30% of annual adjusted gross receipts in excess of
5    $75,000,000 but not exceeding $100,000,000;
6        35% of annual adjusted gross receipts in excess of
7    $100,000,000.
8    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
9is imposed on persons engaged in the business of conducting
10riverboat gambling operations, other than licensed managers
11conducting riverboat gambling operations on behalf of the
12State, based on the adjusted gross receipts received by a
13licensed owner from gambling games authorized under this Act at
14the following rates:
15        15% of annual adjusted gross receipts up to and
16    including $25,000,000;
17        22.5% of annual adjusted gross receipts in excess of
18    $25,000,000 but not exceeding $50,000,000;
19        27.5% of annual adjusted gross receipts in excess of
20    $50,000,000 but not exceeding $75,000,000;
21        32.5% of annual adjusted gross receipts in excess of
22    $75,000,000 but not exceeding $100,000,000;
23        37.5% of annual adjusted gross receipts in excess of
24    $100,000,000 but not exceeding $150,000,000;
25        45% of annual adjusted gross receipts in excess of
26    $150,000,000 but not exceeding $200,000,000;

 

 

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1        50% of annual adjusted gross receipts in excess of
2    $200,000,000.
3    (a-3) Beginning July 1, 2003, a privilege tax is imposed on
4persons engaged in the business of conducting riverboat
5gambling operations, other than licensed managers conducting
6riverboat gambling operations on behalf of the State, based on
7the adjusted gross receipts received by a licensed owner from
8gambling games authorized under this Act at the following
9rates:
10        15% of annual adjusted gross receipts up to and
11    including $25,000,000;
12        27.5% of annual adjusted gross receipts in excess of
13    $25,000,000 but not exceeding $37,500,000;
14        32.5% of annual adjusted gross receipts in excess of
15    $37,500,000 but not exceeding $50,000,000;
16        37.5% of annual adjusted gross receipts in excess of
17    $50,000,000 but not exceeding $75,000,000;
18        45% of annual adjusted gross receipts in excess of
19    $75,000,000 but not exceeding $100,000,000;
20        50% of annual adjusted gross receipts in excess of
21    $100,000,000 but not exceeding $250,000,000;
22        70% of annual adjusted gross receipts in excess of
23    $250,000,000.
24    An amount equal to the amount of wagering taxes collected
25under this subsection (a-3) that are in addition to the amount
26of wagering taxes that would have been collected if the

 

 

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1wagering tax rates under subsection (a-2) were in effect shall
2be paid into the Common School Fund.
3    The privilege tax imposed under this subsection (a-3) shall
4no longer be imposed beginning on the earlier of (i) July 1,
52005; (ii) the first date after June 20, 2003 that riverboat
6gambling operations are conducted pursuant to a dormant
7license; or (iii) the first day that riverboat gambling
8operations are conducted under the authority of an owners
9license that is in addition to the 10 owners licenses initially
10authorized under this Act. For the purposes of this subsection
11(a-3), the term "dormant license" means an owners license that
12is authorized by this Act under which no riverboat gambling
13operations are being conducted on June 20, 2003.
14    (a-4) Beginning on the first day on which the tax imposed
15under subsection (a-3) is no longer imposed, a privilege tax is
16imposed on persons engaged in the business of conducting
17riverboat gambling operations, other than licensed managers
18conducting riverboat gambling operations on behalf of the
19State, based on the adjusted gross receipts received by a
20licensed owner from gambling games authorized under this Act at
21the following rates:
22        15% of annual adjusted gross receipts up to and
23    including $25,000,000;
24        22.5% of annual adjusted gross receipts in excess of
25    $25,000,000 but not exceeding $50,000,000;
26        27.5% of annual adjusted gross receipts in excess of

 

 

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1    $50,000,000 but not exceeding $75,000,000;
2        32.5% of annual adjusted gross receipts in excess of
3    $75,000,000 but not exceeding $100,000,000;
4        37.5% of annual adjusted gross receipts in excess of
5    $100,000,000 but not exceeding $150,000,000;
6        45% of annual adjusted gross receipts in excess of
7    $150,000,000 but not exceeding $200,000,000;
8        50% of annual adjusted gross receipts in excess of
9    $200,000,000.
10    For the imposition of the privilege tax in this subsection
11(a-4), amounts paid to qualified charities and all taxes paid
12to any government or municipality shall not be included in the
13determination of adjusted gross receipts.
14    (a-8) Riverboat gambling operations conducted by a
15licensed manager on behalf of the State are not subject to the
16tax imposed under this Section.
17    (a-10) The taxes imposed by this Section shall be paid by
18the licensed owner to the Board not later than 5:00 o'clock
19p.m. of the day after the day when the wagers were made.
20    (a-15) If the privilege tax imposed under subsection (a-3)
21is no longer imposed pursuant to item (i) of the last paragraph
22of subsection (a-3), then by June 15 of each year, each owners
23licensee, other than an owners licensee that admitted 1,000,000
24persons or fewer in calendar year 2004, must, in addition to
25the payment of all amounts otherwise due under this Section,
26pay to the Board a reconciliation payment in the amount, if

 

 

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1any, by which the licensed owner's base amount exceeds the
2amount of net privilege tax paid by the licensed owner to the
3Board in the then current State fiscal year. A licensed owner's
4net privilege tax obligation due for the balance of the State
5fiscal year shall be reduced up to the total of the amount paid
6by the licensed owner in its June 15 reconciliation payment.
7The obligation imposed by this subsection (a-15) is binding on
8any person, firm, corporation, or other entity that acquires an
9ownership interest in any such owners license. The obligation
10imposed under this subsection (a-15) terminates on the earliest
11of: (i) July 1, 2007, (ii) the first day after the effective
12date of this amendatory Act of the 94th General Assembly that
13riverboat gambling operations are conducted pursuant to a
14dormant license, (iii) the first day that riverboat gambling
15operations are conducted under the authority of an owners
16license that is in addition to the 10 owners licenses initially
17authorized under this Act, or (iv) the first day that a
18licensee under the Illinois Horse Racing Act of 1975 conducts
19gaming operations with slot machines or other electronic gaming
20devices. The Board must reduce the obligation imposed under
21this subsection (a-15) by an amount the Board deems reasonable
22for any of the following reasons: (A) an act or acts of God,
23(B) an act of bioterrorism or terrorism or a bioterrorism or
24terrorism threat that was investigated by a law enforcement
25agency, or (C) a condition beyond the control of the owners
26licensee that does not result from any act or omission by the

 

 

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1owners licensee or any of its agents and that poses a hazardous
2threat to the health and safety of patrons. If an owners
3licensee pays an amount in excess of its liability under this
4Section, the Board shall apply the overpayment to future
5payments required under this Section.
6    For purposes of this subsection (a-15):
7    "Act of God" means an incident caused by the operation of
8an extraordinary force that cannot be foreseen, that cannot be
9avoided by the exercise of due care, and for which no person
10can be held liable.
11    "Base amount" means the following:
12        For a riverboat in Alton, $31,000,000.
13        For a riverboat in East Peoria, $43,000,000.
14        For the Empress riverboat in Joliet, $86,000,000.
15        For a riverboat in Metropolis, $45,000,000.
16        For the Harrah's riverboat in Joliet, $114,000,000.
17        For a riverboat in Aurora, $86,000,000.
18        For a riverboat in East St. Louis, $48,500,000.
19        For a riverboat in Elgin, $198,000,000.
20    "Dormant license" has the meaning ascribed to it in
21subsection (a-3).
22    "Net privilege tax" means all privilege taxes paid by a
23licensed owner to the Board under this Section, less all
24payments made from the State Gaming Fund pursuant to subsection
25(b) of this Section.
26    The changes made to this subsection (a-15) by Public Act

 

 

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194-839 are intended to restate and clarify the intent of Public
2Act 94-673 with respect to the amount of the payments required
3to be made under this subsection by an owners licensee to the
4Board.
5    (b) Until January 1, 1998, 25% of the tax revenue deposited
6in the State Gaming Fund under this Section shall be paid,
7subject to appropriation by the General Assembly, to the unit
8of local government which is designated as the home dock of the
9riverboat. Beginning January 1, 1998, from the tax revenue
10deposited in the State Gaming Fund under this Section, an
11amount equal to 5% of adjusted gross receipts generated by a
12riverboat shall be paid monthly, subject to appropriation by
13the General Assembly, to the unit of local government that is
14designated as the home dock of the riverboat. From the tax
15revenue deposited in the State Gaming Fund pursuant to
16riverboat gambling operations conducted by a licensed manager
17on behalf of the State, an amount equal to 5% of adjusted gross
18receipts generated pursuant to those riverboat gambling
19operations shall be paid monthly, subject to appropriation by
20the General Assembly, to the unit of local government that is
21designated as the home dock of the riverboat upon which those
22riverboat gambling operations are conducted.
23    (c) Appropriations, as approved by the General Assembly,
24may be made from the State Gaming Fund to the Board (i) for the
25administration and enforcement of this Act and the Video Gaming
26Act, (ii) for distribution to the Department of State Police

 

 

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1and to the Department of Revenue for the enforcement of this
2Act, and (iii) to the Department of Human Services for the
3administration of programs to treat problem gambling.
4    (c-5) Before May 26, 2006 (the effective date of Public Act
594-804) and beginning on the effective date of this amendatory
6Act of the 95th General Assembly, unless any organization
7licensee under the Illinois Horse Racing Act of 1975 begins to
8operate a slot machine or video game of chance under the
9Illinois Horse Racing Act of 1975 or this Act, after the
10payments required under subsections (b) and (c) have been made,
11an amount equal to 15% of the adjusted gross receipts of (1) an
12owners licensee that relocates pursuant to Section 11.2, (2) an
13owners licensee conducting riverboat gambling operations
14pursuant to an owners license that is initially issued after
15June 25, 1999, or (3) the first riverboat gambling operations
16conducted by a licensed manager on behalf of the State under
17Section 7.3, whichever comes first, shall be paid from the
18State Gaming Fund into the Horse Racing Equity Fund.
19    (c-10) Each year the General Assembly shall appropriate
20from the General Revenue Fund to the Education Assistance Fund
21an amount equal to the amount paid into the Horse Racing Equity
22Fund pursuant to subsection (c-5) in the prior calendar year.
23    (c-15) After the payments required under subsections (b),
24(c), and (c-5) have been made, an amount equal to 2% of the
25adjusted gross receipts of (1) an owners licensee that
26relocates pursuant to Section 11.2, (2) an owners licensee

 

 

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1conducting riverboat gambling operations pursuant to an owners
2license that is initially issued after June 25, 1999, or (3)
3the first riverboat gambling operations conducted by a licensed
4manager on behalf of the State under Section 7.3, whichever
5comes first, shall be paid, subject to appropriation from the
6General Assembly, from the State Gaming Fund to each home rule
7county with a population of over 3,000,000 inhabitants for the
8purpose of enhancing the county's criminal justice system.
9    (c-20) Each year the General Assembly shall appropriate
10from the General Revenue Fund to the Education Assistance Fund
11an amount equal to the amount paid to each home rule county
12with a population of over 3,000,000 inhabitants pursuant to
13subsection (c-15) in the prior calendar year.
14    (c-25) On July 1, 2013 and each July 1 thereafter,
15$1,600,000 shall be transferred from the State Gaming Fund to
16the Chicago State University Education Improvement Fund.
17    (c-30) On July 1, 2013 or as soon as possible thereafter,
18$92,000,000 shall be transferred from the State Gaming Fund to
19the School Infrastructure Fund and $23,000,000 shall be
20transferred from the State Gaming Fund to the Horse Racing
21Equity Fund.
22    (c-35) Beginning on July 1, 2013, in addition to any amount
23transferred under subsection (c-30) of this Section,
24$5,530,000 shall be transferred monthly from the State Gaming
25Fund to the School Infrastructure Fund.
26    (d) From time to time, the Board shall transfer the

 

 

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1remainder of the funds generated by this Act into the Education
2Assistance Fund, created by Public Act 86-0018, of the State of
3Illinois.
4    (e) Nothing in this Act shall prohibit the unit of local
5government designated as the home dock of the riverboat from
6entering into agreements with other units of local government
7in this State or in other states to share its portion of the
8tax revenue.
9    (f) To the extent practicable, the Board shall administer
10and collect the wagering taxes imposed by this Section in a
11manner consistent with the provisions of Sections 4, 5, 5a, 5b,
125c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
13Retailers' Occupation Tax Act and Section 3-7 of the Uniform
14Penalty and Interest Act.
15(Source: P.A. 98-18, eff. 6-7-13.)