Rep. Christian L. Mitchell

Filed: 4/20/2015

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 670

2    AMENDMENT NO. ______. Amend House Bill 670 by replacing
3everything after the enacting clause with the following:
 
4    "Section 1. Short title. This Act may be cited as the
5Comprehensive Fund Administration Services Tax Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Department" means the Department of Revenue.
8    "Comprehensive fund administration services" means and
9includes:
10        (1) fund accounting;
11        (2) fund consulting;
12        (3) partnership accounting;
13        (4) third party transfer agency services;
14        (5) management company services;
15        (6) trustee and fiduciary services; and
16        (7) regulatory and financial reporting services.

 

 

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1    "Private market fund" means any private equity fund,
2venture capital fund, hedge fund, real estate fund, or other
3investment vehicle that is not publicly traded.
 
4    Section 10. Tax imposed.
5    (a) Beginning on July 1, 2015, a service tax is imposed
6upon each business that:
7        (1) has a principal place of business located in the
8    State;
9        (2) provides comprehensive fund administration
10    services to private market funds; and
11        (3) has $10,000,000,000 or more in capital, funds, and
12    assets under management at any time during the reporting
13    period.
14    The tax shall be imposed at the rate of 3% of the fees
15charged for those services.
16    (b) Every business subject to the tax under subsection (a)
17shall apply to the Department (upon a form prescribed and
18furnished by the Department) for a certificate of registration
19under this Act.
20    (c) The Department shall have full power to administer and
21enforce this Act, to collect all taxes and penalties due
22hereunder, to dispose of taxes and penalties so collected in
23the manner hereinafter provided, and to determine all rights to
24credit memoranda, arising on account of the erroneous payment
25of tax or penalty hereunder.

 

 

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1    (d) The tax imposed under this Act shall be in addition to
2all other taxes imposed by the State of Illinois or by any
3municipal corporation or political subdivision thereof.
4    (e) The tax under this Act is not imposed with respect to
5any business that may not, under the Constitution and statutes
6of the United States, be made the subject of taxation by this
7State.
 
8    Section 15. Returns. On or before the twentieth day of each
9calendar month, each person who is subject to the tax under
10this Act during the preceding calendar month shall file a
11return with the Department, stating:
12        (1) the name of the taxpayer;
13        (2) the address of the taxpayer's principal place of
14    business;
15        (3) the amount of tax due;
16        (4) the signature of the taxpayer; and
17        (5) such other reasonable information as the
18    Department may require.
19    If a taxpayer fails to sign a return within 30 days after
20the proper notice and demand for signature by the Department,
21the return shall be considered valid and any amount shown to be
22due on the return shall be deemed assessed.
23    The taxpayer shall remit the amount of the tax due to the
24Department at the time the taxpayer files his or her return.
 

 

 

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1    Section 20. Suspension or revocation of certificates of
2registration. The Department may, after notice and a hearing as
3provided herein, suspend or revoke the certificate of
4registration of any person who violates any of the provisions
5of this Act. Before suspension or revocation of a certificate
6of registration, the Department shall, within 90 days after
7non-compliance and at least 7 days prior to the date of the
8hearing, give the person so accused notice in writing of the
9charge against him or her, and on the date designated shall
10conduct a hearing upon this matter. The lapse of such 90 day
11period shall not preclude the Department from conducting
12suspension or revocation proceedings at a later date if
13necessary. Any hearing held under this Section shall be
14conducted by the Director of Revenue or by any officer or
15employee of the Department designated, in writing, by the
16Director of Revenue.
17    Upon the hearing of any such proceeding, the Director of
18Revenue, or any officer or employee of the Department
19designated, in writing, by the Director of Revenue, may
20administer oaths and the Department may procure by its subpoena
21the attendance of witnesses and, by its subpoena duces tecum,
22the production of relevant books and papers. Any circuit court,
23upon application either of the accused or of the Department,
24may, by order duly entered, require the attendance of witnesses
25and the production of relevant books and papers, before the
26Department in any hearing relating to the suspension or

 

 

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1revocation of certificates of registration. Upon refusal or
2neglect to obey the order of the court, the court may compel
3obedience thereof by proceedings for contempt.
 
4    Section 25. Review of Department decisions. Any person
5aggrieved by any decision of the Department under this Act may,
6within 20 days after notice of such decision, protest and
7request a hearing, whereupon the Department shall give notice
8to such person of the time and place fixed for such hearing and
9shall hold a hearing in conformity with the provisions of this
10Act and then issue its final administrative decision in the
11matter to such person. In the absence of such a protest within
1220 days, the Department's decision shall become final without
13any further determination being made or notice given.
 
14    Section 30. Distribution of proceeds. The first
15$32,000,000 of the proceeds collected under this Act annually
16shall be deposited into the Textbook Block Grant Fund, a
17special Fund created in the State treasury. Moneys in the
18Textbook Block Grant Fund shall be used by the State Board of
19Education, subject to appropriation, for the purpose of
20administering the textbook block grant program established
21under Section 2-3.155 of the School Code. The remainder of the
22proceeds shall be used for the purpose of increasing General
23State Aid to school districts.
 

 

 

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1    Section 35. Rules. The Department may adopt rules related
2to the enforcement of this Act.
 
3    Section 100. The State Finance Act is amended by adding
4Section 5.866 as follows:
 
5    (30 ILCS 105/5.866 new)
6    Sec. 5.866. The Textbook Block Grant Fund.
 
7    Section 999. Effective date. This Act takes effect upon
8becoming law.".