99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2139

 

Introduced 5/25/2015, by Sen. Michael Noland

 

SYNOPSIS AS INTRODUCED:
 
230 ILCS 10/13  from Ch. 120, par. 2413

    Amends the Riverboat Gambling Act. Provides that an owners licensee that conducted gambling operations prior to January 1, 2015 shall receive a dollar-for-dollar credit against the taxes imposed by the Act for any money paid to a local government or charitable organization. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning gaming.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Riverboat Gambling Act is amended by
5changing Section 13 as follows:
 
6    (230 ILCS 10/13)  (from Ch. 120, par. 2413)
7    Sec. 13. Wagering tax; rate; distribution.
8    (a) Until January 1, 1998, a tax is imposed on the adjusted
9gross receipts received from gambling games authorized under
10this Act at the rate of 20%.
11    (a-1) From January 1, 1998 until July 1, 2002, a privilege
12tax is imposed on persons engaged in the business of conducting
13riverboat gambling operations, based on the adjusted gross
14receipts received by a licensed owner from gambling games
15authorized under this Act at the following rates:
16        15% of annual adjusted gross receipts up to and
17    including $25,000,000;
18        20% of annual adjusted gross receipts in excess of
19    $25,000,000 but not exceeding $50,000,000;
20        25% of annual adjusted gross receipts in excess of
21    $50,000,000 but not exceeding $75,000,000;
22        30% of annual adjusted gross receipts in excess of
23    $75,000,000 but not exceeding $100,000,000;

 

 

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1        35% of annual adjusted gross receipts in excess of
2    $100,000,000.
3    (a-2) From July 1, 2002 until July 1, 2003, a privilege tax
4is imposed on persons engaged in the business of conducting
5riverboat gambling operations, other than licensed managers
6conducting riverboat gambling operations on behalf of the
7State, based on the adjusted gross receipts received by a
8licensed owner from gambling games authorized under this Act at
9the following rates:
10        15% of annual adjusted gross receipts up to and
11    including $25,000,000;
12        22.5% of annual adjusted gross receipts in excess of
13    $25,000,000 but not exceeding $50,000,000;
14        27.5% of annual adjusted gross receipts in excess of
15    $50,000,000 but not exceeding $75,000,000;
16        32.5% of annual adjusted gross receipts in excess of
17    $75,000,000 but not exceeding $100,000,000;
18        37.5% of annual adjusted gross receipts in excess of
19    $100,000,000 but not exceeding $150,000,000;
20        45% of annual adjusted gross receipts in excess of
21    $150,000,000 but not exceeding $200,000,000;
22        50% of annual adjusted gross receipts in excess of
23    $200,000,000.
24    (a-3) Beginning July 1, 2003, a privilege tax is imposed on
25persons engaged in the business of conducting riverboat
26gambling operations, other than licensed managers conducting

 

 

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1riverboat gambling operations on behalf of the State, based on
2the adjusted gross receipts received by a licensed owner from
3gambling games authorized under this Act at the following
4rates:
5        15% of annual adjusted gross receipts up to and
6    including $25,000,000;
7        27.5% of annual adjusted gross receipts in excess of
8    $25,000,000 but not exceeding $37,500,000;
9        32.5% of annual adjusted gross receipts in excess of
10    $37,500,000 but not exceeding $50,000,000;
11        37.5% of annual adjusted gross receipts in excess of
12    $50,000,000 but not exceeding $75,000,000;
13        45% of annual adjusted gross receipts in excess of
14    $75,000,000 but not exceeding $100,000,000;
15        50% of annual adjusted gross receipts in excess of
16    $100,000,000 but not exceeding $250,000,000;
17        70% of annual adjusted gross receipts in excess of
18    $250,000,000.
19    An amount equal to the amount of wagering taxes collected
20under this subsection (a-3) that are in addition to the amount
21of wagering taxes that would have been collected if the
22wagering tax rates under subsection (a-2) were in effect shall
23be paid into the Common School Fund.
24    The privilege tax imposed under this subsection (a-3) shall
25no longer be imposed beginning on the earlier of (i) July 1,
262005; (ii) the first date after June 20, 2003 that riverboat

 

 

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1gambling operations are conducted pursuant to a dormant
2license; or (iii) the first day that riverboat gambling
3operations are conducted under the authority of an owners
4license that is in addition to the 10 owners licenses initially
5authorized under this Act. For the purposes of this subsection
6(a-3), the term "dormant license" means an owners license that
7is authorized by this Act under which no riverboat gambling
8operations are being conducted on June 20, 2003.
9    (a-4) Beginning on the first day on which the tax imposed
10under subsection (a-3) is no longer imposed, a privilege tax is
11imposed on persons engaged in the business of conducting
12riverboat gambling operations, other than licensed managers
13conducting riverboat gambling operations on behalf of the
14State, based on the adjusted gross receipts received by a
15licensed owner from gambling games authorized under this Act at
16the following rates:
17        15% of annual adjusted gross receipts up to and
18    including $25,000,000;
19        22.5% of annual adjusted gross receipts in excess of
20    $25,000,000 but not exceeding $50,000,000;
21        27.5% of annual adjusted gross receipts in excess of
22    $50,000,000 but not exceeding $75,000,000;
23        32.5% of annual adjusted gross receipts in excess of
24    $75,000,000 but not exceeding $100,000,000;
25        37.5% of annual adjusted gross receipts in excess of
26    $100,000,000 but not exceeding $150,000,000;

 

 

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1        45% of annual adjusted gross receipts in excess of
2    $150,000,000 but not exceeding $200,000,000;
3        50% of annual adjusted gross receipts in excess of
4    $200,000,000.
5    (a-6) An owners licensee that conducted gambling
6operations prior to January 1, 2015 shall receive a
7dollar-for-dollar credit against the tax imposed under this
8Section for any money paid to a local government or charitable
9organization.
10    (a-8) Riverboat gambling operations conducted by a
11licensed manager on behalf of the State are not subject to the
12tax imposed under this Section.
13    (a-10) The taxes imposed by this Section shall be paid by
14the licensed owner to the Board not later than 5:00 o'clock
15p.m. of the day after the day when the wagers were made.
16    (a-15) If the privilege tax imposed under subsection (a-3)
17is no longer imposed pursuant to item (i) of the last paragraph
18of subsection (a-3), then by June 15 of each year, each owners
19licensee, other than an owners licensee that admitted 1,000,000
20persons or fewer in calendar year 2004, must, in addition to
21the payment of all amounts otherwise due under this Section,
22pay to the Board a reconciliation payment in the amount, if
23any, by which the licensed owner's base amount exceeds the
24amount of net privilege tax paid by the licensed owner to the
25Board in the then current State fiscal year. A licensed owner's
26net privilege tax obligation due for the balance of the State

 

 

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1fiscal year shall be reduced up to the total of the amount paid
2by the licensed owner in its June 15 reconciliation payment.
3The obligation imposed by this subsection (a-15) is binding on
4any person, firm, corporation, or other entity that acquires an
5ownership interest in any such owners license. The obligation
6imposed under this subsection (a-15) terminates on the earliest
7of: (i) July 1, 2007, (ii) the first day after the effective
8date of this amendatory Act of the 94th General Assembly that
9riverboat gambling operations are conducted pursuant to a
10dormant license, (iii) the first day that riverboat gambling
11operations are conducted under the authority of an owners
12license that is in addition to the 10 owners licenses initially
13authorized under this Act, or (iv) the first day that a
14licensee under the Illinois Horse Racing Act of 1975 conducts
15gaming operations with slot machines or other electronic gaming
16devices. The Board must reduce the obligation imposed under
17this subsection (a-15) by an amount the Board deems reasonable
18for any of the following reasons: (A) an act or acts of God,
19(B) an act of bioterrorism or terrorism or a bioterrorism or
20terrorism threat that was investigated by a law enforcement
21agency, or (C) a condition beyond the control of the owners
22licensee that does not result from any act or omission by the
23owners licensee or any of its agents and that poses a hazardous
24threat to the health and safety of patrons. If an owners
25licensee pays an amount in excess of its liability under this
26Section, the Board shall apply the overpayment to future

 

 

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1payments required under this Section.
2    For purposes of this subsection (a-15):
3    "Act of God" means an incident caused by the operation of
4an extraordinary force that cannot be foreseen, that cannot be
5avoided by the exercise of due care, and for which no person
6can be held liable.
7    "Base amount" means the following:
8        For a riverboat in Alton, $31,000,000.
9        For a riverboat in East Peoria, $43,000,000.
10        For the Empress riverboat in Joliet, $86,000,000.
11        For a riverboat in Metropolis, $45,000,000.
12        For the Harrah's riverboat in Joliet, $114,000,000.
13        For a riverboat in Aurora, $86,000,000.
14        For a riverboat in East St. Louis, $48,500,000.
15        For a riverboat in Elgin, $198,000,000.
16    "Dormant license" has the meaning ascribed to it in
17subsection (a-3).
18    "Net privilege tax" means all privilege taxes paid by a
19licensed owner to the Board under this Section, less all
20payments made from the State Gaming Fund pursuant to subsection
21(b) of this Section.
22    The changes made to this subsection (a-15) by Public Act
2394-839 are intended to restate and clarify the intent of Public
24Act 94-673 with respect to the amount of the payments required
25to be made under this subsection by an owners licensee to the
26Board.

 

 

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1    (b) Until January 1, 1998, 25% of the tax revenue deposited
2in the State Gaming Fund under this Section shall be paid,
3subject to appropriation by the General Assembly, to the unit
4of local government which is designated as the home dock of the
5riverboat. Beginning January 1, 1998, from the tax revenue
6deposited in the State Gaming Fund under this Section, an
7amount equal to 5% of adjusted gross receipts generated by a
8riverboat shall be paid monthly, subject to appropriation by
9the General Assembly, to the unit of local government that is
10designated as the home dock of the riverboat. From the tax
11revenue deposited in the State Gaming Fund pursuant to
12riverboat gambling operations conducted by a licensed manager
13on behalf of the State, an amount equal to 5% of adjusted gross
14receipts generated pursuant to those riverboat gambling
15operations shall be paid monthly, subject to appropriation by
16the General Assembly, to the unit of local government that is
17designated as the home dock of the riverboat upon which those
18riverboat gambling operations are conducted.
19    (c) Appropriations, as approved by the General Assembly,
20may be made from the State Gaming Fund to the Board (i) for the
21administration and enforcement of this Act and the Video Gaming
22Act, (ii) for distribution to the Department of State Police
23and to the Department of Revenue for the enforcement of this
24Act, and (iii) to the Department of Human Services for the
25administration of programs to treat problem gambling.
26    (c-5) Before May 26, 2006 (the effective date of Public Act

 

 

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194-804) and beginning on the effective date of this amendatory
2Act of the 95th General Assembly, unless any organization
3licensee under the Illinois Horse Racing Act of 1975 begins to
4operate a slot machine or video game of chance under the
5Illinois Horse Racing Act of 1975 or this Act, after the
6payments required under subsections (b) and (c) have been made,
7an amount equal to 15% of the adjusted gross receipts of (1) an
8owners licensee that relocates pursuant to Section 11.2, (2) an
9owners licensee conducting riverboat gambling operations
10pursuant to an owners license that is initially issued after
11June 25, 1999, or (3) the first riverboat gambling operations
12conducted by a licensed manager on behalf of the State under
13Section 7.3, whichever comes first, shall be paid from the
14State Gaming Fund into the Horse Racing Equity Fund.
15    (c-10) Each year the General Assembly shall appropriate
16from the General Revenue Fund to the Education Assistance Fund
17an amount equal to the amount paid into the Horse Racing Equity
18Fund pursuant to subsection (c-5) in the prior calendar year.
19    (c-15) After the payments required under subsections (b),
20(c), and (c-5) have been made, an amount equal to 2% of the
21adjusted gross receipts of (1) an owners licensee that
22relocates pursuant to Section 11.2, (2) an owners licensee
23conducting riverboat gambling operations pursuant to an owners
24license that is initially issued after June 25, 1999, or (3)
25the first riverboat gambling operations conducted by a licensed
26manager on behalf of the State under Section 7.3, whichever

 

 

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1comes first, shall be paid, subject to appropriation from the
2General Assembly, from the State Gaming Fund to each home rule
3county with a population of over 3,000,000 inhabitants for the
4purpose of enhancing the county's criminal justice system.
5    (c-20) Each year the General Assembly shall appropriate
6from the General Revenue Fund to the Education Assistance Fund
7an amount equal to the amount paid to each home rule county
8with a population of over 3,000,000 inhabitants pursuant to
9subsection (c-15) in the prior calendar year.
10    (c-25) On July 1, 2013 and each July 1 thereafter,
11$1,600,000 shall be transferred from the State Gaming Fund to
12the Chicago State University Education Improvement Fund.
13    (c-30) On July 1, 2013 or as soon as possible thereafter,
14$92,000,000 shall be transferred from the State Gaming Fund to
15the School Infrastructure Fund and $23,000,000 shall be
16transferred from the State Gaming Fund to the Horse Racing
17Equity Fund.
18    (c-35) Beginning on July 1, 2013, in addition to any amount
19transferred under subsection (c-30) of this Section,
20$5,530,000 shall be transferred monthly from the State Gaming
21Fund to the School Infrastructure Fund.
22    (d) From time to time, the Board shall transfer the
23remainder of the funds generated by this Act into the Education
24Assistance Fund, created by Public Act 86-0018, of the State of
25Illinois.
26    (e) Nothing in this Act shall prohibit the unit of local

 

 

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1government designated as the home dock of the riverboat from
2entering into agreements with other units of local government
3in this State or in other states to share its portion of the
4tax revenue.
5    (f) To the extent practicable, the Board shall administer
6and collect the wagering taxes imposed by this Section in a
7manner consistent with the provisions of Sections 4, 5, 5a, 5b,
85c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of the
9Retailers' Occupation Tax Act and Section 3-7 of the Uniform
10Penalty and Interest Act.
11(Source: P.A. 98-18, eff. 6-7-13.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.