Illinois General Assembly - Full Text of Public Act 101-0545
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Public Act 101-0545


 

Public Act 0545 101ST GENERAL ASSEMBLY



 


 
Public Act 101-0545
 
SB1257 EnrolledLRB101 09340 HLH 54436 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Income Tax Act is amended by
changing Section 205 as follows:
 
    (35 ILCS 5/205)  (from Ch. 120, par. 2-205)
    Sec. 205. Exempt organizations.
    (a) Charitable, etc. organizations. For tax years
beginning before January 1, 2019, the The base income of an
organization which is exempt from the federal income tax by
reason of the Internal Revenue Code shall not be determined
under section 203 of this Act, but shall be its unrelated
business taxable income as determined under section 512 of the
Internal Revenue Code, without any deduction for the tax
imposed by this Act. The standard exemption provided by section
204 of this Act shall not be allowed in determining the net
income of an organization to which this subsection applies.
    For tax years beginning on or after January 1, 2019, the
base income of an organization which is exempt from the federal
income tax by reason of the Internal Revenue Code shall not be
determined under Section 203 of this Act, but shall be its
unrelated business taxable income as determined under Section
512 of the Internal Revenue Code, without regard to Section
512(a)(7) of the Internal Revenue Code and without any
deduction for the tax imposed by this Act. The standard
exemption provided by Section 204 of this Act shall not be
allowed in determining the net income of an organization to
which this subsection applies. This exclusion is exempt from
the provisions of Section 250.
    (b) Partnerships. A partnership as such shall not be
subject to the tax imposed by subsection 201 (a) and (b) of
this Act, but shall be subject to the replacement tax imposed
by subsection 201 (c) and (d) of this Act and shall compute its
base income as described in subsection (d) of Section 203 of
this Act. For taxable years ending on or after December 31,
2004, an investment partnership, as defined in Section
1501(a)(11.5) of this Act, shall not be subject to the tax
imposed by subsections (c) and (d) of Section 201 of this Act.
A partnership shall file such returns and other information at
such time and in such manner as may be required under Article 5
of this Act. The partners in a partnership shall be liable for
the replacement tax imposed by subsection 201 (c) and (d) of
this Act on such partnership, to the extent such tax is not
paid by the partnership, as provided under the laws of Illinois
governing the liability of partners for the obligations of a
partnership. Persons carrying on business as partners shall be
liable for the tax imposed by subsection 201 (a) and (b) of
this Act only in their separate or individual capacities.
    (c) Subchapter S corporations. A Subchapter S corporation
shall not be subject to the tax imposed by subsection 201 (a)
and (b) of this Act but shall be subject to the replacement tax
imposed by subsection 201 (c) and (d) of this Act and shall
file such returns and other information at such time and in
such manner as may be required under Article 5 of this Act.
    (d) Combat zone, terrorist attack, and certain other
deaths. An individual relieved from the federal income tax for
any taxable year by reason of section 692 of the Internal
Revenue Code shall not be subject to the tax imposed by this
Act for such taxable year.
    (e) Certain trusts. A common trust fund described in
Section 584 of the Internal Revenue Code, and any other trust
to the extent that the grantor is treated as the owner thereof
under sections 671 through 678 of the Internal Revenue Code
shall not be subject to the tax imposed by this Act.
    (f) Certain business activities. A person not otherwise
subject to the tax imposed by this Act shall not become subject
to the tax imposed by this Act by reason of:
        (1) that person's ownership of tangible personal
    property located at the premises of a printer in this State
    with which the person has contracted for printing, or
        (2) activities of the person's employees or agents
    located solely at the premises of a printer and related to
    quality control, distribution, or printing services
    performed by a printer in the State with which the person
    has contracted for printing.
    (g) A nonprofit risk organization that holds a certificate
of authority under Article VIID of the Illinois Insurance Code
is exempt from the tax imposed under this Act with respect to
its activities or operations in furtherance of the powers
conferred upon it under that Article VIID of the Illinois
Insurance Code.
(Source: P.A. 97-507, eff. 8-23-11.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/23/2019