Full Text of HB5595 98th General Assembly
HB5595 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB5595 Introduced , by Rep. Brandon W. Phelps SYNOPSIS AS INTRODUCED: |
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Creates the Facilitating Business Rapid Response to State Declared Disasters Act of 2014. Provides that an out-of-State business that conducts operations within the State solely for the purpose of performing work or services related to a declared State disaster or emergency during a specified disaster period shall not be required to register, file, or remit State or local taxes with respect to that disaster-related work, and is not subject to any State licensing or registration requirements; provided that, in the case of an out-of-State employee who is required to have a professional license to perform the disaster relief or recovery work, that employee is required to maintain a current license in his or her home state or another state during the disaster period. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the | 5 | | Facilitating Business Rapid Response to State Declared | 6 | | Disasters Act of 2014. | 7 | | Section 5. Findings. With respect to emergency aid coming | 8 | | from out of State, the General Assembly finds that: | 9 | | (1) During times of storm, tornado, flood, fire, | 10 | | earthquake, or other disaster or emergency, many | 11 | | businesses bring in resources and personnel from other | 12 | | States on a temporary basis to expedite the often enormous | 13 | | and overwhelming tasks of cleaning up, restoring and | 14 | | repairing damaged buildings, equipment, and property, and | 15 | | deploying or building new replacement facilities in the | 16 | | State. | 17 | | (2) This work may involve the need for out-of-State | 18 | | businesses, including out-of-State affiliates of | 19 | | businesses based in the State, to bring in resources, | 20 | | property, and personnel that previously had no connection | 21 | | to the State to perform disaster relief and recovery | 22 | | activities in the State for extended periods of time. | 23 | | (3) During such time of operating in the State on a |
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| 1 | | temporary basis solely for the purpose of helping the State | 2 | | recover from the disaster or emergency, these businesses | 3 | | and individual employees should not be burdened by any | 4 | | State or local taxes. | 5 | | (4) The State's nexus and residency thresholds are | 6 | | intended to apply to businesses and individuals that | 7 | | conduct regular business operations or intend to reside in | 8 | | the State and should not be directed at businesses and | 9 | | individuals coming into the State on a temporary basis to | 10 | | provide help and assistance in response to a declared | 11 | | disaster or emergency. | 12 | | (5) To ensure that businesses may focus on quick | 13 | | response to the needs of the State and its citizens during | 14 | | a declared disaster or emergency, it is appropriate for the | 15 | | General Assembly to deem that such activity for a | 16 | | reasonable period of time before, during and after the | 17 | | disaster or emergency for repairing and restoration of the | 18 | | often devastating damage to property and infrastructure in | 19 | | the State shall not establish presence, residency, nor | 20 | | doing business in the State nor any other criteria for | 21 | | purposes of State and local taxes, licensing and regulatory | 22 | | requirements. | 23 | | Section 10. Definitions. In this Act: | 24 | | "Registered business in the State" (or "registered | 25 | | business") means a business entity that is currently registered |
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| 1 | | to do business in the State prior to a declared State disaster | 2 | | or emergency. | 3 | | "Out-of-State business" means a business entity that (i) | 4 | | has no presence in the State and conducts no business in the | 5 | | State, whose services are requested by a registered business or | 6 | | by a State or local government for purposes of performing | 7 | | disaster or emergency related work in the State and (ii) has no | 8 | | registrations or tax filings or nexus in the State prior to a | 9 | | declared State disaster or emergency. This shall also include a | 10 | | business entity that is affiliated with the registered business | 11 | | in the State solely through common ownership. | 12 | | "Out-of-State employee" means an employee who does not work | 13 | | in the State, except for disaster or emergency related work | 14 | | during the disaster period. | 15 | | "Infrastructure" means property and equipment owned or | 16 | | used by communications networks, cable, video broadband, data | 17 | | and Voice Over Internet Protocol networks, electric | 18 | | generation, transmission and distribution systems, gas | 19 | | distribution systems, water pipelines, and public roads and | 20 | | bridges and related support facilities that service multiple | 21 | | customers, including, but not limited to, real and personal | 22 | | property such as buildings, offices, lines, poles, pipes, | 23 | | structures, and equipment. | 24 | | "Declared State disaster or emergency" means a disaster or | 25 | | emergency event (1) for which a Governor's proclamation of a | 26 | | State of emergency has been issued or (2) for which a |
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| 1 | | Presidential declaration of a federal major disaster or | 2 | | emergency has been issued. | 3 | | "Disaster period" means a period that begins within 10 days | 4 | | of the first day of the Governor's proclamation or the | 5 | | President's declaration and that extends for a period of 60 | 6 | | calendar days after the end of the declared disaster or | 7 | | emergency period. | 8 | | "Disaster or emergency related work" means repairing, | 9 | | renovating, installing, building, rendering services or other | 10 | | business activities that relate to infrastructure that has been | 11 | | damaged impaired or destroyed by the declared State disaster or | 12 | | emergency. | 13 | | Section 15. Obligations during and after disaster period. | 14 | | (a) An out-of-State business that conducts operations | 15 | | within the State solely for the purpose of performing work or | 16 | | services related to a declared State disaster or emergency | 17 | | during the disaster period shall not be considered to have | 18 | | established a level of presence that would require that | 19 | | business to register, file, or remit State or local taxes, or | 20 | | that would require that business or its out-of-State employees | 21 | | to be subject to any State licensing or registration | 22 | | requirements; provided that, in the case of an employee who is | 23 | | required to have a professional license to perform the disaster | 24 | | relief or recovery work, that employee is required to maintain | 25 | | a current license in his or her home state or another state |
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| 1 | | during the disaster period. Out-of-State businesses and | 2 | | employees are exempt from the following: State unemployment | 3 | | insurance requirements, State or local occupational licensing | 4 | | fees, use or occupation taxes imposed on the sale or use of | 5 | | tangible personal property used for the purpose of disaster or | 6 | | emergency related work during the disaster period, and Illinois | 7 | | Commerce Commission or Secretary of State licensing and | 8 | | regulatory requirements. Income derived solely from disaster | 9 | | or emergency related work performed by out-of-State businesses | 10 | | or employees during the disaster period shall not be allocated | 11 | | or apportioned to this State for the purposes of the taxes | 12 | | imposed under the Illinois Income Tax Act, including the | 13 | | employer's obligation to pay over withholding taxes. | 14 | | (b) Out-of-State businesses and employees are required to | 15 | | pay taxes and fees, including use and occupation taxes, motor | 16 | | fuel taxes, hotel taxes, and automobile rental taxes, to the | 17 | | extent that the use or purchase is for personal use and not | 18 | | solely for the purpose of disaster or emergency related work | 19 | | during the disaster period. | 20 | | (c) Any out-of-State business or out-of-State employee | 21 | | that remains in the State after the disaster period will become | 22 | | subject to the State's normal standards for establishing | 23 | | presence, residency or doing business in the State and will | 24 | | therefore become responsible for any business or employee tax | 25 | | requirements that ensue. |
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| 1 | | Section 20. Administration, notification, and reporting. | 2 | | (a) An out-of-State business that enters the State shall, | 3 | | upon request, provide to the Office of the Governor, the | 4 | | Department of Revenue, and the Department of Employment | 5 | | Security a statement that it is in the State solely for the | 6 | | purpose of responding to the disaster or emergency, which | 7 | | statement shall include the business name, state of domicile, | 8 | | principal business address, federal tax identification number, | 9 | | date of entry, and contact information. | 10 | | (b) A registered business in the State shall, upon request, | 11 | | provide the information required in paragraph (a) of this | 12 | | Section for any affiliate that enters the State that is an | 13 | | out-of-State business. The notification shall also include | 14 | | contact information for the registered business in the State. | 15 | | (c) An out-of-State business or an out-of-State employee | 16 | | that remains in the State after the disaster period shall | 17 | | complete State and local registration, licensing and filing | 18 | | requirements that ensue as a result of establishing the | 19 | | requisite business presence or residency in the State | 20 | | applicable under the existing law. | 21 | | (d) The Department of Revenue shall promulgate necessary | 22 | | regulations, develop and issue forms or online processes, and | 23 | | maintain and make available an annual record of any | 24 | | designations pursuant to this Act to carry out these | 25 | | administrative procedures. | 26 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.
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