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

    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,
3represented in the General Assembly:
 
4    Section 5. The Business Corporation Act of 1983 is amended
5by 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7    (Section scheduled to be repealed on December 31, 2025)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
9corporations. For the the privilege of exercising its
10franchises in this State, each domestic corporation shall pay
11to the Secretary of State the following franchise taxes,
12computed on the basis, at the rates and for the periods
13prescribed 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,
92021, the first $30 in liability is exempt from the tax imposed
10under this Section. On or after January 1, 2021 and prior to
11January 1, 2022, the first $1,000 in liability is exempt from
12the tax imposed under this Section. On or after January 1, 2022
13and prior to January 1, 2023, the first $10,000 in liability is
14exempt from the tax imposed under this Section. On or after
15January 1, 2023 and prior to January 1, 2024, the first
16$100,000 in liability is exempt from the tax imposed under this
17Section. The provisions of this Section shall not require the
18payment of any franchise tax that would otherwise have been due
19and payable on or after January 1, 2024. There shall be no
20refunds or proration of franchise tax for any taxes due and
21payable on or after January 1, 2024 on the basis that a portion
22of the corporation's taxable year extends beyond January 1,
232024. Public Act 101-9 This amendatory Act of the 101st General
24Assembly shall not affect any right accrued or established, or
25any 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.)