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Sen. Toi W. Hutchinson
Filed: 3/21/2019
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| 1 | | AMENDMENT TO SENATE BILL 1515
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| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1515, AS AMENDED, |
| 3 | | by replacing everything after the enacting clause with the |
| 4 | | following:
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| 5 | | "Section 5. The Illinois Income Tax Act is amended by |
| 6 | | changing Section 205 as follows:
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| 7 | | (35 ILCS 5/205) (from Ch. 120, par. 2-205)
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| 8 | | Sec. 205. Exempt organizations.
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| 9 | | (a) Charitable, etc. organizations. For tax years |
| 10 | | beginning before January 1, 2019, the The base income of an
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| 11 | | organization which is exempt from the federal income tax by |
| 12 | | reason of the Internal Revenue Code shall not be determined
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| 13 | | under section 203 of this Act, but shall be its unrelated |
| 14 | | business
taxable income as determined under section 512 of the |
| 15 | | Internal Revenue
Code, without any deduction for the tax |
| 16 | | imposed by this Act. The
standard exemption provided by section |
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| 1 | | 204 of this Act shall not be
allowed in determining the net |
| 2 | | income of an organization to which this
subsection applies.
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| 3 | | For tax years beginning on or after January 1, 2019, the |
| 4 | | base income of an organization which is exempt from the federal |
| 5 | | income tax by reason of the Internal Revenue Code shall not be |
| 6 | | determined under Section 203 of this Act, but shall be its |
| 7 | | unrelated business taxable income as determined under Section |
| 8 | | 512 of the Internal Revenue Code, without regard to Section |
| 9 | | 512(a)(7) of the Internal Revenue Code and without any |
| 10 | | deduction for the tax imposed by this Act. The standard |
| 11 | | exemption provided by Section 204 of this Act shall not be |
| 12 | | allowed in determining the net income of an organization to |
| 13 | | which this subsection applies. This exclusion is exempt from |
| 14 | | the provisions of Section 250. |
| 15 | | (b) Partnerships. A partnership as such shall not be |
| 16 | | subject to
the tax imposed by subsection 201 (a) and (b) of |
| 17 | | this Act, but shall be
subject to the replacement tax imposed |
| 18 | | by subsection 201 (c) and (d) of
this Act and shall compute its |
| 19 | | base income as described in subsection (d)
of Section 203 of |
| 20 | | this Act. For taxable years ending on or after December 31, |
| 21 | | 2004, an investment partnership, as defined in Section |
| 22 | | 1501(a)(11.5) of this Act, shall not be subject to the tax |
| 23 | | imposed by subsections (c) and (d) of Section 201 of this Act.
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| 24 | | A partnership shall file such returns and other
information at |
| 25 | | such
time and in such manner as may be required under Article 5 |
| 26 | | of this Act.
The partners in a partnership shall be liable for |
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| 1 | | the replacement tax imposed
by subsection 201 (c) and (d) of |
| 2 | | this Act on such partnership, to the extent
such tax is not |
| 3 | | paid by the partnership, as provided under the laws of Illinois
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| 4 | | governing the liability of partners for the obligations of a |
| 5 | | partnership.
Persons carrying on business as partners shall be |
| 6 | | liable for the tax
imposed by subsection 201 (a) and (b) of |
| 7 | | this Act only in their separate
or individual capacities.
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| 8 | | (c) Subchapter S corporations. A Subchapter S corporation |
| 9 | | shall not
be subject to the tax imposed by subsection 201 (a) |
| 10 | | and
(b) of this Act but shall be subject to the replacement tax |
| 11 | | imposed by subsection
201 (c) and (d) of this Act and shall |
| 12 | | file such returns
and other information
at such time and in |
| 13 | | such manner as may be required under Article 5 of this Act.
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| 14 | | (d) Combat zone, terrorist attack, and certain other |
| 15 | | deaths. An individual relieved from the federal
income tax for |
| 16 | | any taxable year by reason of section 692 of the Internal
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| 17 | | Revenue Code shall not be subject to the tax imposed by this |
| 18 | | Act for
such taxable year.
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| 19 | | (e) Certain trusts. A common trust fund described in |
| 20 | | Section 584
of the Internal Revenue Code, and any other trust |
| 21 | | to the extent that the
grantor is treated as the owner thereof |
| 22 | | under sections 671 through 678
of the Internal Revenue Code |
| 23 | | shall not be subject to the tax imposed by
this Act.
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| 24 | | (f) Certain business activities. A person not otherwise |
| 25 | | subject to the tax
imposed by this Act shall not become subject |
| 26 | | to the tax imposed by this Act by
reason of:
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| 1 | | (1) that person's ownership of tangible personal |
| 2 | | property located at the
premises of
a printer in this State |
| 3 | | with which the person has contracted for printing, or
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| 4 | | (2) activities of the person's employees or agents |
| 5 | | located solely at the
premises of a printer and related to |
| 6 | | quality control, distribution, or printing
services |
| 7 | | performed by a printer in the State with which the person |
| 8 | | has
contracted for printing.
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| 9 | | (g) A nonprofit risk organization that holds a certificate |
| 10 | | of authority under Article VIID of the Illinois Insurance Code |
| 11 | | is exempt from the tax imposed under this Act with respect to |
| 12 | | its activities or operations in furtherance of the powers |
| 13 | | conferred upon it under that Article VIID of the Illinois |
| 14 | | Insurance Code.
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| 15 | | (Source: P.A. 97-507, eff. 8-23-11.)
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| 16 | | Section 99. Effective date. This Act takes effect upon |
| 17 | | becoming law.".
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