101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2568

 

Introduced , by Rep. Anne Stava-Murray

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Corporate Buyback Tax Act. Imposes a tax on the buyback of shares of a publicly held corporation at the rate of 0.25% of the purchase price paid by a corporation for the purchase of its own securities. Applies to publicly held corporations having 100 or more employees. Effective immediately.


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A BILL FOR

 

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1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Corporate Buyback Tax Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Corporation" means a publicly held corporation that has,
8at the time of the transaction, 100 or more employees.
9    "Department" means the Department of Revenue.
10    "Purchase" means the purchase by a corporation of its own
11corporate securities.
 
12    Section 10. Tax imposed.
13    (a) Beginning on July 1, 2020, a tax is imposed upon each
14corporation that makes a purchase of its own corporate
15securities in this State. The tax is imposed at the rate of
160.25% of the amount of the purchase.
17    (b) A corporation subject to the tax under subsection (a)
18shall apply to the Department (upon a form prescribed and
19furnished by the Department) for a certificate of registration
20under this Act.
21    (c) The Department shall have full power to administer and
22enforce this Act, to collect all taxes and penalties due under

 

 

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1this Act, to dispose of taxes and penalties so collected in the
2manner provided in this Act, and to determine all rights to
3credit memoranda, arising on account of the erroneous payment
4of tax or penalty hereunder.
5    (d) The tax imposed under this Act shall be in addition to
6all other taxes imposed by the State of Illinois or by any
7municipal corporation or political subdivision of the State.
8Persons subject to the tax imposed by this Act may reimburse
9themselves for their tax liability under this Act by separately
10stating the amount of the tax as an additional charge to
11consumers.
12    (e) The tax is not imposed with respect to any business in
13interstate commerce, or otherwise to the extent to which such
14business may not, under the Constitution and statutes of the
15United States, be made the subject of taxation by this State.
 
16    Section 15. Returns. On or before the 20th day of each
17calendar month, a corporation is subject to the tax under this
18Act during the preceding calendar month shall file a return
19with the Department, stating:
20        (1) the name of the taxpayer;
21        (2) the address of the taxpayer's principal place of
22    business;
23        (3) the amount of tax due;
24        (4) the signature of the taxpayer; and
25        (5) such other reasonable information as the

 

 

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1    Department may require.
2    If a taxpayer fails to sign a return within 30 days after
3the proper notice and demand for signature by the Department,
4the return shall be considered valid and any amount shown to be
5due on the return shall be deemed assessed.
6    The taxpayer shall remit the amount of the tax due to the
7Department at the time the taxpayer files its return.
 
8    Section 20. Suspension or revocation of certificates of
9registration. The Department may, after notice and a hearing as
10provided in this Act, suspend or revoke the certificate of
11registration of any person who violates any of the provisions
12of this Act. Before suspension or revocation of a certificate
13of registration, the Department shall, within 90 days after
14noncompliance and at least 7 days prior to the date of the
15hearing, give the person so accused notice in writing of the
16charge against him or her, and on the date designated shall
17conduct a hearing upon this matter. The lapse of such 90-day
18period shall not preclude the Department from conducting
19suspension or revocation proceedings at a later date if
20necessary. Any hearing held under this Section shall be
21conducted by the Director of Revenue or by any officer or
22employee of the Department designated, in writing, by the
23Director of Revenue.
24    Upon the hearing of any such proceeding, the Director of
25Revenue, or any officer or employee of the Department

 

 

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1designated, in writing, by the Director of Revenue, may
2administer oaths and the Department may procure by its subpoena
3the attendance of witnesses and, by its subpoena duces tecum,
4the production of relevant books and papers. Any circuit court,
5upon application either of the accused or of the Department,
6may, by order, require the attendance of witnesses and the
7production of relevant books and papers, before the Department
8in any hearing relating to the suspension or revocation of
9certificates of registration. Upon refusal or neglect to obey
10the order of the court, the court may compel obedience thereof
11by proceedings for contempt.
 
12    Section 25. Review of Department decisions. Any person
13aggrieved by any decision of the Department under this Act may,
14within 20 days after notice of the decision, protest and
15request a hearing. The Department shall give notice to the
16person of the time and place fixed for the hearing, hold a
17hearing in conformity with this Act, and issue its final
18administrative decision in the matter to the person. In the
19absence of a protest within 20 days, the Department's decision
20shall become final without any further determination being made
21or notice given.
 
22    Section 30. Rules. The Department may adopt rules related
23to the enforcement of this Act.
 
24    Section 99. Effective date. This Act takes effect upon

 

 

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1becoming law.