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| | 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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| | SB2691 | | LRB101 17082 JLS 66482 b |
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| 1 | | AN ACT concerning business.
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| 2 | | Be it enacted by the People of the State of Illinois, |
| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Business Corporation Act of 1983 is amended |
| 5 | | by changing Section 15.35 as follows:
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| 6 | | (805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
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| 7 | | (Section scheduled to be repealed on December 31, 2025)
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| 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
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| 13 | | prescribed in this Act:
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| 14 | | (a) An initial franchise tax at the time of filing its |
| 15 | | first report of
issuance of shares.
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| 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
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| 2 | | required by this Act to be filed in the office of the |
| 3 | | Secretary of State.
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| 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
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| 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
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| 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
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| 4 | | succeeding calendar year.
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| 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.
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| 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. |