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| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0127 Introduced 2/3/2021, by Sen. Emil Jones, III 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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| | SB0127 | | LRB102 13986 JLS 19338 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| 7 | | (Section scheduled to be repealed on December 31, 2025)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: |
| 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 |
| 22 | | an increase in its paid-in
capital over the amount thereof |
| 23 | | last reported in any document, other than
an annual |
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| 1 | | report, interim annual report or final transition annual |
| 2 | | report
required by this Act to be filed in the office of |
| 3 | | the Secretary of State.
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| 4 | | (c) An additional franchise tax at the time of filing |
| 5 | | a report of paid-in
capital following a statutory merger |
| 6 | | or consolidation, which discloses that
the paid-in capital |
| 7 | | of 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 |
| 12 | | filed in the office of the Secretary of State; and in |
| 13 | | addition, the
surviving or new corporation shall be liable |
| 14 | | for a further additional franchise
tax on the paid-in |
| 15 | | capital of each of the merged or consolidated
corporations |
| 16 | | as last reported by them in any document, other than an |
| 17 | | annual
report, required by this Act to be filed with the |
| 18 | | Secretary of State from
their taxable year end to the next |
| 19 | | succeeding anniversary month or, in
the case of a |
| 20 | | corporation which has established an extended filing |
| 21 | | month,
the extended filing month of the surviving or new |
| 22 | | corporation; however if
the taxable year ends within the |
| 23 | | 2-month
2 month period immediately preceding the
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| 24 | | anniversary month or, in the case of a corporation which |
| 25 | | has established an
extended filing month, the extended |
| 26 | | filing month of the surviving or new
corporation the tax |
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| 1 | | will be computed to the anniversary month or, in the
case |
| 2 | | of a corporation which has established an extended filing |
| 3 | | month, the
extended filing month of the surviving or new |
| 4 | | corporation in the next
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 |
| 7 | | Act 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 |
| 17 | | this Section. The provisions of this Section shall not require |
| 18 | | the payment of any franchise tax that would otherwise have |
| 19 | | been due and payable on or after January 1, 2024. There shall |
| 20 | | be no refunds or proration of franchise tax for any taxes due |
| 21 | | and payable on or after January 1, 2024 on the basis that a |
| 22 | | portion of the corporation's taxable year extends beyond |
| 23 | | January 1, 2024. Public Act 101-9
This amendatory Act of the |
| 24 | | 101st General Assembly shall not affect any right accrued or |
| 25 | | established, or any liability or penalty incurred prior to |
| 26 | | January 1, 2024. |