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

    Amends the Business Corporation Act of 1983. Makes a technical change in a Section concerning franchise taxes payable by domestic corporations.


LRB102 13986 JLS 19338 b

 

 

A BILL FOR

 

SB0127LRB102 13986 JLS 19338 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Business Corporation Act of 1983 is amended
5by changing Section 15.35 as follows:
 
6    (805 ILCS 5/15.35)  (from Ch. 32, par. 15.35)
7    (Section scheduled to be repealed on December 31, 2025)
8    Sec. 15.35. Franchise taxes payable by domestic
9corporations. For the the privilege of exercising its
10franchises in this State, each domestic corporation shall pay
11to the Secretary of State the following franchise taxes,
12computed on the basis, at the rates and for the periods
13prescribed in this Act:
14        (a) An initial franchise tax at the time of filing its
15    first report of issuance of shares.
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.
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
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.
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.
8    (e) On or after January 1, 2020 and prior to January 1,
92021, the first $30 in liability is exempt from the tax imposed
10under this Section. On or after January 1, 2021 and prior to
11January 1, 2022, the first $1,000 in liability is exempt from
12the tax imposed under this Section. On or after January 1, 2022
13and prior to January 1, 2023, the first $10,000 in liability is
14exempt from the tax imposed under this Section. On or after
15January 1, 2023 and prior to January 1, 2024, the first
16$100,000 in liability is exempt from the tax imposed under
17this Section. The provisions of this Section shall not require
18the payment of any franchise tax that would otherwise have
19been due and payable on or after January 1, 2024. There shall
20be no refunds or proration of franchise tax for any taxes due
21and payable on or after January 1, 2024 on the basis that a
22portion of the corporation's taxable year extends beyond
23January 1, 2024. Public Act 101-9 This amendatory Act of the
24101st General Assembly shall not affect any right accrued or
25established, or any liability or penalty incurred prior to
26January 1, 2024.

 

 

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1    (f) This Section is repealed on December 31, 2025.
2(Source: P.A. 101-9, eff. 6-5-19; revised 7-18-19.)