Illinois General Assembly - Full Text of HB1554
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Full Text of HB1554  98th General Assembly


Rep. Mary E. Flowers

Filed: 3/19/2013





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2    AMENDMENT NO. ______. Amend House Bill 1554 by replacing
3everything after the enacting clause with the following:
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, 2013, a tax is imposed on the
8privilege of engaging in a financial transaction that occurs or
9is cleared on a facility located in this State. The tax is
10imposed at a rate of 0.01% of the value of the transaction. The
11tax shall be paid by the trading facility or, in any other
12case, by the purchaser involved in the transaction.
13    (b) A tax imposed under this Act, and all civil penalties
14that may be assessed as an incident thereof, shall be
15administered, collected, and enforced by the Illinois
16Department of Revenue in the same manner as required under the



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1Retailers' Occupation Tax Act insofar as may be applicable. The
2Department of Revenue has full power to administer and enforce
3this Act, to collect all taxes and penalties due under this
4Act, to dispose of taxes and penalties so collected as provided
5in this Act, and to determine all rights to credit memoranda
6arising on account of the erroneous payment of tax or penalty
7under this Act. The Department of Revenue shall pay over to the
8State Treasurer all taxes and penalties collected under this
9Act for deposit into the General Revenue Fund.
10    (c) For the purposes of this Act, "financial transaction"
11means a transaction involving the purchase or sale of:
12        (1) any share of stock in a corporation;
13        (2) a "futures contract", defined as a contractual
14    agreement to buy or sell a particular commodity or
15    financial instrument at a pre-determined price in the
16    future;
17        (3) a "swap contract", defined as a contractual
18    agreement to exchange the cash flows of one party's
19    financial instrument for those of another party's
20    financial instrument;
21        (4) a "credit default swap", defined as a swap designed
22    to transfer the credit exposure of fixed income products
23    between parties, including credit derivative contracts,
24    where the purchaser of the swap makes payments up until the
25    maturity date of a contract, and the seller agrees to pay
26    off a third party debt if the party defaults on the loan;



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1        (5) an "options contract", defined as a contract that
2    allows the holder to buy or sell an underlying security or
3    other financial instrument at a given price (including, but
4    not limited to, options on futures contracts); and
5        (6) other "derivatives", defined as a security or
6    financial instrument the price of which is dependent upon
7    or derived from one or more underlying assets.
8    For the purposes of this Act, "financial transaction" does
9not include a transaction involving securities held in a
10retirement account or a transaction involving a mutual fund.
11    An exchange of securities of financial instruments shall be
12treated as a purchase of the securities or financial received
13by each party to the exchange.
14    Section 10. Rules. The Department shall adopt
15administrative rules to implement and administer this Act.
16Initial rules may be adopted as emergency rules.
17    Section 99. Effective date. This Act takes effect upon
18becoming law.".