Full Text of SB2691 101st General Assembly
SB2691 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB2691 Introduced 1/29/2020, by Sen. William E. Brady SYNOPSIS AS INTRODUCED: | | 805 ILCS 5/15.35 | from Ch. 32, par. 15.35 |
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Amends the Business Corporation Act of 1983. Makes a technical change in a
Section concerning franchise taxes payable by domestic corporations.
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| | A BILL FOR |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Business Corporation Act of 1983 is amended | 5 | | by changing Section 15.35 as follows:
| 6 | | (805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
| 7 | | (Section scheduled to be repealed on December 31, 2025)
| 8 | | Sec. 15.35. Franchise taxes payable by domestic | 9 | | corporations. For the the privilege of exercising its | 10 | | franchises in this State, each
domestic corporation shall pay | 11 | | to the Secretary of State the following
franchise taxes, | 12 | | computed on the basis, at the rates and for the periods
| 13 | | prescribed in this Act:
| 14 | | (a) An initial franchise tax at the time of filing its | 15 | | first report of
issuance of shares.
| 16 | | (b) An additional franchise tax at the time of filing | 17 | | (1) a report of
the issuance of additional shares, or (2) a | 18 | | report of an increase in paid-in
capital without the | 19 | | issuance of shares, or (3) an amendment to the articles
of | 20 | | incorporation or a report of cumulative changes in paid-in | 21 | | capital,
whenever any amendment or such report discloses an | 22 | | increase in its paid-in
capital over the amount thereof | 23 | | last reported in any document, other than
an annual report, |
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| 1 | | interim annual report or final transition annual report
| 2 | | required by this Act to be filed in the office of the | 3 | | Secretary of State.
| 4 | | (c) An additional franchise tax at the time of filing a | 5 | | report of paid-in
capital following a statutory merger or | 6 | | consolidation, which discloses that
the paid-in capital of | 7 | | the surviving or new corporation immediately after
the | 8 | | merger or consolidation is greater than the sum of the | 9 | | paid-in capital
of all of the merged or consolidated | 10 | | corporations as last reported
by them in any documents, | 11 | | other than annual reports, required by this Act
to be filed | 12 | | in the office of the Secretary of State; and in addition, | 13 | | the
surviving or new corporation shall be liable for a | 14 | | further additional franchise
tax on the paid-in capital of | 15 | | each of the merged or consolidated
corporations as last | 16 | | reported by them in any document, other than an annual
| 17 | | report, required by this Act to be filed with the Secretary | 18 | | of State from
their taxable year end to the next succeeding | 19 | | anniversary month or, in
the case of a corporation which | 20 | | has established an extended filing month,
the extended | 21 | | filing month of the surviving or new corporation; however | 22 | | if
the taxable year ends within the 2-month 2 month period | 23 | | immediately preceding the
anniversary month or, in the case | 24 | | of a corporation which has established an
extended filing | 25 | | month, the extended filing month of the surviving or new
| 26 | | corporation the tax will be computed to the anniversary |
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| 1 | | month or, in the
case of a corporation which has | 2 | | established an extended filing month, the
extended filing | 3 | | month of the surviving or new corporation in the next
| 4 | | succeeding calendar year.
| 5 | | (d) An annual franchise tax payable each year with the | 6 | | annual report
which the corporation is required by this Act | 7 | | to file.
| 8 | | (e) On or after January 1, 2020 and prior to January 1, | 9 | | 2021, the first $30 in liability is exempt from the tax imposed | 10 | | under this Section. On or after January 1, 2021 and prior to | 11 | | January 1, 2022, the first $1,000 in liability is exempt from | 12 | | the tax imposed under this Section. On or after January 1, 2022 | 13 | | and prior to January 1, 2023, the first $10,000 in liability is | 14 | | exempt from the tax imposed under this Section. On or after | 15 | | January 1, 2023 and prior to January 1, 2024, the first | 16 | | $100,000 in liability is exempt from the tax imposed under this | 17 | | Section. The provisions of this Section shall not require the | 18 | | payment of any franchise tax that would otherwise have been due | 19 | | and payable on or after January 1, 2024. There shall be no | 20 | | refunds or proration of franchise tax for any taxes due and | 21 | | payable on or after January 1, 2024 on the basis that a portion | 22 | | of the corporation's taxable year extends beyond January 1, | 23 | | 2024. Public Act 101-9 This amendatory Act of the 101st General | 24 | | Assembly shall not affect any right accrued or established, or | 25 | | any liability or penalty incurred prior to January 1, 2024. | 26 | | (f) This Section is repealed on December 31, 2025. |
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| 1 | | (Source: P.A. 101-9, eff. 6-5-19; revised 7-18-19.)
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