Full Text of HB1554 98th General Assembly
HB1554ham002 98TH GENERAL ASSEMBLY
Rep. Mary E. Flowers
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AMENDMENT TO HOUSE BILL 1554
AMENDMENT NO. ______. Amend House Bill 1554 by replacing
everything after the enacting clause with the following:
This Act may be cited as the
Financial Transaction Tax Act.
Tax imposed; definitions.
(a) Beginning September 1, 2013, a tax is imposed on the
privilege of engaging in a financial transaction that occurs or
is cleared on a facility located in this State. The tax is
imposed at a rate of 0.01% of the value of the transaction. The
tax shall be paid by the trading facility or, in any other
case, by the purchaser involved in the transaction.
(b) A tax imposed under this Act, and all civil penalties
be assessed as an incident thereof, shall be
administered, collected, and
enforced by the Illinois
Department of Revenue in the same manner as required under the
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Retailers' Occupation Tax Act insofar as may be applicable.
Department of Revenue has full power to administer and enforce
this Act, to collect all taxes and penalties due under this
Act, to dispose
of taxes and penalties so collected as provided
in this Act, and
to determine all rights to credit memoranda
arising on account of the
erroneous payment of tax or penalty
under this Act. The Department of Revenue shall pay over to the
State Treasurer all taxes and penalties collected under this
Act for deposit into the General Revenue Fund.
(c) For the purposes of this Act, "financial transaction"
means a transaction involving the purchase or sale of:
(1) any share of stock in a corporation;
(2) a "futures contract", defined as a contractual
agreement to buy or sell a particular commodity or
financial instrument at a pre-determined price in the
(3) a "swap contract", defined as a contractual
agreement to exchange the cash flows of one party's
financial instrument for those of another party's
(4) a "credit default swap", defined as a swap designed
to transfer the credit exposure of fixed income products
between parties, including credit derivative contracts,
where the purchaser of the swap makes payments up until the
maturity date of a contract, and the seller agrees to pay
off a third party debt if the party defaults on the loan;
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(5) an "options contract", defined as a contract that
allows the holder to buy or sell an underlying security or
other financial instrument at a given price (including, but
not limited to, options on futures contracts); and
(6) other "derivatives", defined as a security or
financial instrument the price of which is dependent upon
or derived from one or more underlying assets.
For the purposes of this Act, "financial transaction" does
not include a transaction involving securities held in a
retirement account or a transaction involving a mutual fund.
An exchange of securities of financial instruments shall be
treated as a purchase of the securities or financial received
by each party to the exchange.
The Department shall adopt
administrative rules to implement and administer this Act.
Initial rules may be adopted as emergency rules.
This Act takes effect upon