SB1582 EngrossedLRB102 16047 HLH 21419 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5changing Sections 211, 303, 304, 710, and 902 as follows:
 
6    (35 ILCS 5/211)
7    Sec. 211. Economic Development for a Growing Economy Tax
8Credit. For tax years beginning on or after January 1, 1999, a
9Taxpayer who has entered into an Agreement (including a New
10Construction EDGE Agreement) under the Economic Development
11for a Growing Economy Tax Credit Act is entitled to a credit
12against the taxes imposed under subsections (a) and (b) of
13Section 201 of this Act in an amount to be determined in the
14Agreement. If the Taxpayer is a partnership or Subchapter S
15corporation, the credit shall be allowed to the partners or
16shareholders in accordance with the determination of income
17and distributive share of income under Sections 702 and 704
18and subchapter S of the Internal Revenue Code. The Department,
19in cooperation with the Department of Commerce and Economic
20Opportunity, shall prescribe rules to enforce and administer
21the provisions of this Section. This Section is exempt from
22the provisions of Section 250 of this Act.
23    The credit shall be subject to the conditions set forth in

 

 

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1the Agreement and the following limitations:
2        (1) The tax credit shall not exceed the Incremental
3    Income Tax (as defined in Section 5-5 of the Economic
4    Development for a Growing Economy Tax Credit Act) with
5    respect to the project; additionally, the New Construction
6    EDGE Credit shall not exceed the New Construction EDGE
7    Incremental Income Tax (as defined in Section 5-5 of the
8    Economic Development for a Growing Economy Tax Credit
9    Act).
10        (2) The amount of the credit allowed during the tax
11    year plus the sum of all amounts allowed in prior years
12    shall not exceed 100% of the aggregate amount expended by
13    the Taxpayer during all prior tax years on approved costs
14    defined by Agreement.
15        (3) The amount of the credit shall be determined on an
16    annual basis. Except as applied in a carryover year
17    pursuant to Section 211(4) of this Act, the credit may not
18    be applied against any State income tax liability in more
19    than 10 taxable years; provided, however, that (i) an
20    eligible business certified by the Department of Commerce
21    and Economic Opportunity under the Corporate Headquarters
22    Relocation Act may not apply the credit against any of its
23    State income tax liability in more than 15 taxable years
24    and (ii) credits allowed to that eligible business are
25    subject to the conditions and requirements set forth in
26    Sections 5-35 and 5-45 of the Economic Development for a

 

 

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1    Growing Economy Tax Credit Act and Section 5-51 as
2    applicable to New Construction EDGE Credits.
3        (4) The credit may not exceed the amount of taxes
4    imposed pursuant to subsections (a) and (b) of Section 201
5    of this Act. Any credit that is unused in the year the
6    credit is computed may be carried forward and applied to
7    the tax liability of the 5 taxable years following the
8    excess credit year. The credit shall be applied to the
9    earliest year for which there is a tax liability. If there
10    are credits from more than one tax year that are available
11    to offset a liability, the earlier credit shall be applied
12    first.
13        (5) No credit shall be allowed with respect to any
14    Agreement for any taxable year ending after the
15    Noncompliance Date. Upon receiving notification by the
16    Department of Commerce and Economic Opportunity of the
17    noncompliance of a Taxpayer with an Agreement, the
18    Department shall notify the Taxpayer that no credit is
19    allowed with respect to that Agreement for any taxable
20    year ending after the Noncompliance Date, as stated in
21    such notification. If any credit has been allowed with
22    respect to an Agreement for a taxable year ending after
23    the Noncompliance Date for that Agreement, any refund paid
24    to the Taxpayer for that taxable year shall, to the extent
25    of that credit allowed, be an erroneous refund within the
26    meaning of Section 912 of this Act.

 

 

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1        If, during any taxable year, a taxpayer ceases
2    operations at a project location that is the subject of
3    that Agreement with the intent to terminate operations in
4    the State, the tax imposed under subsections (a) and (b)
5    of Section 201 of this Act for such taxable year shall be
6    increased by the amount of any credit allowed under the
7    Agreement for that project location prior to the date the
8    taxpayer ceases operations.
9        (6) For purposes of this Section, the terms
10    "Agreement", "Incremental Income Tax", "New Construction
11    EDGE Agreement", "New Construction EDGE Credit", "New
12    Construction EDGE Incremental Income Tax", and
13    "Noncompliance Date" have the same meaning as when used in
14    the Economic Development for a Growing Economy Tax Credit
15    Act.
16(Source: P.A. 101-9, eff. 6-5-19.)
 
17    (35 ILCS 5/303)  (from Ch. 120, par. 3-303)
18    Sec. 303. (a) In general. Any item of capital gain or loss,
19and any item of income from rents or royalties from real or
20tangible personal property, interest, dividends, and patent or
21copyright royalties, and prizes awarded under the Illinois
22Lottery Law, and, for taxable years ending on or after
23December 31, 2019, wagering and gambling winnings from
24Illinois sources as set forth in subsection (e-1) of this
25Section, and, for taxable years ending on or after December

 

 

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131, 2021, sports wagering and winnings from Illinois sources
2as set forth in subsection (e-2) of this Section, to the extent
3such item constitutes nonbusiness income, together with any
4item of deduction directly allocable thereto, shall be
5allocated by any person other than a resident as provided in
6this Section.
7    (b) Capital gains and losses.
8        (1) Real property. Capital gains and losses from sales
9    or exchanges of real property are allocable to this State
10    if the property is located in this State.
11        (2) Tangible personal property. Capital gains and
12    losses from sales or exchanges of tangible personal
13    property are allocable to this State if, at the time of
14    such sale or exchange:
15            (A) The property had its situs in this State; or
16            (B) The taxpayer had its commercial domicile in
17        this State and was not taxable in the state in which
18        the property had its situs.
19        (3) Intangibles. Capital gains and losses from sales
20    or exchanges of intangible personal property are allocable
21    to this State if the taxpayer had its commercial domicile
22    in this State at the time of such sale or exchange.
23    (c) Rents and royalties.
24        (1) Real property. Rents and royalties from real
25    property are allocable to this State if the property is
26    located in this State.

 

 

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1        (2) Tangible personal property. Rents and royalties
2    from tangible personal property are allocable to this
3    State:
4            (A) If and to the extent that the property is
5        utilized in this State; or
6            (B) In their entirety if, at the time such rents or
7        royalties were paid or accrued, the taxpayer had its
8        commercial domicile in this State and was not
9        organized under the laws of or taxable with respect to
10        such rents or royalties in the state in which the
11        property was utilized. The extent of utilization of
12        tangible personal property in a state is determined by
13        multiplying the rents or royalties derived from such
14        property by a fraction, the numerator of which is the
15        number of days of physical location of the property in
16        the state during the rental or royalty period in the
17        taxable year and the denominator of which is the
18        number of days of physical location of the property
19        everywhere during all rental or royalty periods in the
20        taxable year. If the physical location of the property
21        during the rental or royalty period is unknown or
22        unascertainable by the taxpayer, tangible personal
23        property is utilized in the state in which the
24        property was located at the time the rental or royalty
25        payer obtained possession.
26    (d) Patent and copyright royalties.

 

 

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1        (1) Allocation. Patent and copyright royalties are
2    allocable to this State:
3            (A) If and to the extent that the patent or
4        copyright is utilized by the payer in this State; or
5            (B) If and to the extent that the patent or
6        copyright is utilized by the payer in a state in which
7        the taxpayer is not taxable with respect to such
8        royalties and, at the time such royalties were paid or
9        accrued, the taxpayer had its commercial domicile in
10        this State.
11        (2) Utilization.
12            (A) A patent is utilized in a state to the extent
13        that it is employed in production, fabrication,
14        manufacturing or other processing in the state or to
15        the extent that a patented product is produced in the
16        state. If the basis of receipts from patent royalties
17        does not permit allocation to states or if the
18        accounting procedures do not reflect states of
19        utilization, the patent is utilized in this State if
20        the taxpayer has its commercial domicile in this
21        State.
22            (B) A copyright is utilized in a state to the
23        extent that printing or other publication originates
24        in the state. If the basis of receipts from copyright
25        royalties does not permit allocation to states or if
26        the accounting procedures do not reflect states of

 

 

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1        utilization, the copyright is utilized in this State
2        if the taxpayer has its commercial domicile in this
3        State.
4    (e) Illinois lottery prizes. Prizes awarded under the
5Illinois Lottery Law are allocable to this State. Payments
6received in taxable years ending on or after December 31,
72013, from the assignment of a prize under Section 13.1 of the
8Illinois Lottery Law are allocable to this State.
9    (e-1) Wagering and gambling winnings. Payments received in
10taxable years ending on or after December 31, 2019 of winnings
11from pari-mutuel wagering conducted at a wagering facility
12licensed under the Illinois Horse Racing Act of 1975 and from
13gambling games conducted on a riverboat or in a casino or
14organization gaming facility licensed under the Illinois
15Gambling Act are allocable to this State.
16    (e-2) Sports wagering and winnings. Payments received in
17taxable years ending on or after December 31, 2021 of winnings
18from sports wagering conducted in accordance with the Sports
19Wagering Act are allocable to this State.
20    (e-5) Unemployment benefits. Unemployment benefits paid by
21the Illinois Department of Employment Security are allocable
22to this State.
23    (f) Taxability in other state. For purposes of allocation
24of income pursuant to this Section, a taxpayer is taxable in
25another state if:
26        (1) In that state he is subject to a net income tax, a

 

 

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1    franchise tax measured by net income, a franchise tax for
2    the privilege of doing business, or a corporate stock tax;
3    or
4        (2) That state has jurisdiction to subject the
5    taxpayer to a net income tax regardless of whether, in
6    fact, the state does or does not.
7    (g) Cross references.
8        (1) For allocation of interest and dividends by
9    persons other than residents, see Section 301(c)(2).
10        (2) For allocation of nonbusiness income by residents,
11    see Section 301(a).
12(Source: P.A. 101-31, eff. 6-28-19.)
 
13    (35 ILCS 5/304)  (from Ch. 120, par. 3-304)
14    Sec. 304. Business income of persons other than residents.
15    (a) In general. The business income of a person other than
16a resident shall be allocated to this State if such person's
17business income is derived solely from this State. If a person
18other than a resident derives business income from this State
19and one or more other states, then, for tax years ending on or
20before December 30, 1998, and except as otherwise provided by
21this Section, such person's business income shall be
22apportioned to this State by multiplying the income by a
23fraction, the numerator of which is the sum of the property
24factor (if any), the payroll factor (if any) and 200% of the
25sales factor (if any), and the denominator of which is 4

 

 

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1reduced by the number of factors other than the sales factor
2which have a denominator of zero and by an additional 2 if the
3sales factor has a denominator of zero. For tax years ending on
4or after December 31, 1998, and except as otherwise provided
5by this Section, persons other than residents who derive
6business income from this State and one or more other states
7shall compute their apportionment factor by weighting their
8property, payroll, and sales factors as provided in subsection
9(h) of this Section.
10    (1) Property factor.
11        (A) The property factor is a fraction, the numerator
12    of which is the average value of the person's real and
13    tangible personal property owned or rented and used in the
14    trade or business in this State during the taxable year
15    and the denominator of which is the average value of all
16    the person's real and tangible personal property owned or
17    rented and used in the trade or business during the
18    taxable year.
19        (B) Property owned by the person is valued at its
20    original cost. Property rented by the person is valued at
21    8 times the net annual rental rate. Net annual rental rate
22    is the annual rental rate paid by the person less any
23    annual rental rate received by the person from
24    sub-rentals.
25        (C) The average value of property shall be determined
26    by averaging the values at the beginning and ending of the

 

 

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1    taxable year but the Director may require the averaging of
2    monthly values during the taxable year if reasonably
3    required to reflect properly the average value of the
4    person's property.
5    (2) Payroll factor.
6        (A) The payroll factor is a fraction, the numerator of
7    which is the total amount paid in this State during the
8    taxable year by the person for compensation, and the
9    denominator of which is the total compensation paid
10    everywhere during the taxable year.
11        (B) Compensation is paid in this State if:
12            (i) The individual's service is performed entirely
13        within this State;
14            (ii) The individual's service is performed both
15        within and without this State, but the service
16        performed without this State is incidental to the
17        individual's service performed within this State; or
18            (iii) For tax years ending prior to December 31,
19        2020, some of the service is performed within this
20        State and either the base of operations, or if there is
21        no base of operations, the place from which the
22        service is directed or controlled is within this
23        State, or the base of operations or the place from
24        which the service is directed or controlled is not in
25        any state in which some part of the service is
26        performed, but the individual's residence is in this

 

 

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1        State. For tax years ending on or after December 31,
2        2020, compensation is paid in this State if some of the
3        individual's service is performed within this State,
4        the individual's service performed within this State
5        is nonincidental to the individual's service performed
6        without this State, and the individual's service is
7        performed within this State for more than 30 working
8        days during the tax year. The amount of compensation
9        paid in this State shall include the portion of the
10        individual's total compensation for services performed
11        on behalf of his or her employer during the tax year
12        which the number of working days spent within this
13        State during the tax year bears to the total number of
14        working days spent both within and without this State
15        during the tax year. For purposes of this paragraph:
16                (a) The term "working day" means all days
17            during the tax year in which the individual
18            performs duties on behalf of his or her employer.
19            All days in which the individual performs no
20            duties on behalf of his or her employer (e.g.,
21            weekends, vacation days, sick days, and holidays)
22            are not working days.
23                (b) A working day is spent within this State
24            if:
25                    (1) the individual performs service on
26                behalf of the employer and a greater amount of

 

 

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1                time on that day is spent by the individual
2                performing duties on behalf of the employer
3                within this State, without regard to time
4                spent traveling, than is spent performing
5                duties on behalf of the employer without this
6                State; or
7                    (2) the only service the individual
8                performs on behalf of the employer on that day
9                is traveling to a destination within this
10                State, and the individual arrives on that day.
11                (c) Working days spent within this State do
12            not include any day in which the employee is
13            performing services in this State during a
14            disaster period solely in response to a request
15            made to his or her employer by the government of
16            this State, by any political subdivision of this
17            State, or by a person conducting business in this
18            State to perform disaster or emergency-related
19            services in this State. For purposes of this item
20            (c):
21                    "Declared State disaster or emergency"
22                means a disaster or emergency event (i) for
23                which a Governor's proclamation of a state of
24                emergency has been issued or (ii) for which a
25                Presidential declaration of a federal major
26                disaster or emergency has been issued.

 

 

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1                    "Disaster period" means a period that
2                begins 10 days prior to the date of the
3                Governor's proclamation or the President's
4                declaration (whichever is earlier) and extends
5                for a period of 60 calendar days after the end
6                of the declared disaster or emergency period.
7                    "Disaster or emergency-related services"
8                means repairing, renovating, installing,
9                building, or rendering services or conducting
10                other business activities that relate to
11                infrastructure that has been damaged,
12                impaired, or destroyed by the declared State
13                disaster or emergency.
14                    "Infrastructure" means property and
15                equipment owned or used by a public utility,
16                communications network, broadband and internet
17                service provider, cable and video service
18                provider, electric or gas distribution system,
19                or water pipeline that provides service to
20                more than one customer or person, including
21                related support facilities. "Infrastructure"
22                includes, but is not limited to, real and
23                personal property such as buildings, offices,
24                power lines, cable lines, poles,
25                communications lines, pipes, structures, and
26                equipment.

 

 

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1            (iv) Compensation paid to nonresident professional
2        athletes.
3            (a) General. The Illinois source income of a
4        nonresident individual who is a member of a
5        professional athletic team includes the portion of the
6        individual's total compensation for services performed
7        as a member of a professional athletic team during the
8        taxable year which the number of duty days spent
9        within this State performing services for the team in
10        any manner during the taxable year bears to the total
11        number of duty days spent both within and without this
12        State during the taxable year.
13            (b) Travel days. Travel days that do not involve
14        either a game, practice, team meeting, or other
15        similar team event are not considered duty days spent
16        in this State. However, such travel days are
17        considered in the total duty days spent both within
18        and without this State.
19            (c) Definitions. For purposes of this subpart
20        (iv):
21                (1) The term "professional athletic team"
22            includes, but is not limited to, any professional
23            baseball, basketball, football, soccer, or hockey
24            team.
25                (2) The term "member of a professional
26            athletic team" includes those employees who are

 

 

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1            active players, players on the disabled list, and
2            any other persons required to travel and who
3            travel with and perform services on behalf of a
4            professional athletic team on a regular basis.
5            This includes, but is not limited to, coaches,
6            managers, and trainers.
7                (3) Except as provided in items (C) and (D) of
8            this subpart (3), the term "duty days" means all
9            days during the taxable year from the beginning of
10            the professional athletic team's official
11            pre-season training period through the last game
12            in which the team competes or is scheduled to
13            compete. Duty days shall be counted for the year
14            in which they occur, including where a team's
15            official pre-season training period through the
16            last game in which the team competes or is
17            scheduled to compete, occurs during more than one
18            tax year.
19                    (A) Duty days shall also include days on
20                which a member of a professional athletic team
21                performs service for a team on a date that
22                does not fall within the foregoing period
23                (e.g., participation in instructional leagues,
24                the "All Star Game", or promotional
25                "caravans"). Performing a service for a
26                professional athletic team includes conducting

 

 

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1                training and rehabilitation activities, when
2                such activities are conducted at team
3                facilities.
4                    (B) Also included in duty days are game
5                days, practice days, days spent at team
6                meetings, promotional caravans, preseason
7                training camps, and days served with the team
8                through all post-season games in which the
9                team competes or is scheduled to compete.
10                    (C) Duty days for any person who joins a
11                team during the period from the beginning of
12                the professional athletic team's official
13                pre-season training period through the last
14                game in which the team competes, or is
15                scheduled to compete, shall begin on the day
16                that person joins the team. Conversely, duty
17                days for any person who leaves a team during
18                this period shall end on the day that person
19                leaves the team. Where a person switches teams
20                during a taxable year, a separate duty-day
21                calculation shall be made for the period the
22                person was with each team.
23                    (D) Days for which a member of a
24                professional athletic team is not compensated
25                and is not performing services for the team in
26                any manner, including days when such member of

 

 

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1                a professional athletic team has been
2                suspended without pay and prohibited from
3                performing any services for the team, shall
4                not be treated as duty days.
5                    (E) Days for which a member of a
6                professional athletic team is on the disabled
7                list and does not conduct rehabilitation
8                activities at facilities of the team, and is
9                not otherwise performing services for the team
10                in Illinois, shall not be considered duty days
11                spent in this State. All days on the disabled
12                list, however, are considered to be included
13                in total duty days spent both within and
14                without this State.
15                (4) The term "total compensation for services
16            performed as a member of a professional athletic
17            team" means the total compensation received during
18            the taxable year for services performed:
19                    (A) from the beginning of the official
20                pre-season training period through the last
21                game in which the team competes or is
22                scheduled to compete during that taxable year;
23                and
24                    (B) during the taxable year on a date
25                which does not fall within the foregoing
26                period (e.g., participation in instructional

 

 

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1                leagues, the "All Star Game", or promotional
2                caravans).
3                This compensation shall include, but is not
4            limited to, salaries, wages, bonuses as described
5            in this subpart, and any other type of
6            compensation paid during the taxable year to a
7            member of a professional athletic team for
8            services performed in that year. This compensation
9            does not include strike benefits, severance pay,
10            termination pay, contract or option year buy-out
11            payments, expansion or relocation payments, or any
12            other payments not related to services performed
13            for the team.
14                For purposes of this subparagraph, "bonuses"
15            included in "total compensation for services
16            performed as a member of a professional athletic
17            team" subject to the allocation described in
18            Section 302(c)(1) are: bonuses earned as a result
19            of play (i.e., performance bonuses) during the
20            season, including bonuses paid for championship,
21            playoff or "bowl" games played by a team, or for
22            selection to all-star league or other honorary
23            positions; and bonuses paid for signing a
24            contract, unless the payment of the signing bonus
25            is not conditional upon the signee playing any
26            games for the team or performing any subsequent

 

 

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1            services for the team or even making the team, the
2            signing bonus is payable separately from the
3            salary and any other compensation, and the signing
4            bonus is nonrefundable.
5    (3) Sales factor.
6        (A) The sales factor is a fraction, the numerator of
7    which is the total sales of the person in this State during
8    the taxable year, and the denominator of which is the
9    total sales of the person everywhere during the taxable
10    year.
11        (B) Sales of tangible personal property are in this
12    State if:
13            (i) The property is delivered or shipped to a
14        purchaser, other than the United States government,
15        within this State regardless of the f. o. b. point or
16        other conditions of the sale; or
17            (ii) The property is shipped from an office,
18        store, warehouse, factory or other place of storage in
19        this State and either the purchaser is the United
20        States government or the person is not taxable in the
21        state of the purchaser; provided, however, that
22        premises owned or leased by a person who has
23        independently contracted with the seller for the
24        printing of newspapers, periodicals or books shall not
25        be deemed to be an office, store, warehouse, factory
26        or other place of storage for purposes of this

 

 

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1        Section. Sales of tangible personal property are not
2        in this State if the seller and purchaser would be
3        members of the same unitary business group but for the
4        fact that either the seller or purchaser is a person
5        with 80% or more of total business activity outside of
6        the United States and the property is purchased for
7        resale.
8        (B-1) Patents, copyrights, trademarks, and similar
9    items of intangible personal property.
10            (i) Gross receipts from the licensing, sale, or
11        other disposition of a patent, copyright, trademark,
12        or similar item of intangible personal property, other
13        than gross receipts governed by paragraph (B-7) of
14        this item (3), are in this State to the extent the item
15        is utilized in this State during the year the gross
16        receipts are included in gross income.
17            (ii) Place of utilization.
18                (I) A patent is utilized in a state to the
19            extent that it is employed in production,
20            fabrication, manufacturing, or other processing in
21            the state or to the extent that a patented product
22            is produced in the state. If a patent is utilized
23            in more than one state, the extent to which it is
24            utilized in any one state shall be a fraction
25            equal to the gross receipts of the licensee or
26            purchaser from sales or leases of items produced,

 

 

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1            fabricated, manufactured, or processed within that
2            state using the patent and of patented items
3            produced within that state, divided by the total
4            of such gross receipts for all states in which the
5            patent is utilized.
6                (II) A copyright is utilized in a state to the
7            extent that printing or other publication
8            originates in the state. If a copyright is
9            utilized in more than one state, the extent to
10            which it is utilized in any one state shall be a
11            fraction equal to the gross receipts from sales or
12            licenses of materials printed or published in that
13            state divided by the total of such gross receipts
14            for all states in which the copyright is utilized.
15                (III) Trademarks and other items of intangible
16            personal property governed by this paragraph (B-1)
17            are utilized in the state in which the commercial
18            domicile of the licensee or purchaser is located.
19            (iii) If the state of utilization of an item of
20        property governed by this paragraph (B-1) cannot be
21        determined from the taxpayer's books and records or
22        from the books and records of any person related to the
23        taxpayer within the meaning of Section 267(b) of the
24        Internal Revenue Code, 26 U.S.C. 267, the gross
25        receipts attributable to that item shall be excluded
26        from both the numerator and the denominator of the

 

 

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1        sales factor.
2        (B-2) Gross receipts from the license, sale, or other
3    disposition of patents, copyrights, trademarks, and
4    similar items of intangible personal property, other than
5    gross receipts governed by paragraph (B-7) of this item
6    (3), may be included in the numerator or denominator of
7    the sales factor only if gross receipts from licenses,
8    sales, or other disposition of such items comprise more
9    than 50% of the taxpayer's total gross receipts included
10    in gross income during the tax year and during each of the
11    2 immediately preceding tax years; provided that, when a
12    taxpayer is a member of a unitary business group, such
13    determination shall be made on the basis of the gross
14    receipts of the entire unitary business group.
15        (B-5) For taxable years ending on or after December
16    31, 2008, except as provided in subsections (ii) through
17    (vii), receipts from the sale of telecommunications
18    service or mobile telecommunications service are in this
19    State if the customer's service address is in this State.
20            (i) For purposes of this subparagraph (B-5), the
21        following terms have the following meanings:
22            "Ancillary services" means services that are
23        associated with or incidental to the provision of
24        "telecommunications services", including, but not
25        limited to, "detailed telecommunications billing",
26        "directory assistance", "vertical service", and "voice

 

 

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1        mail services".
2            "Air-to-Ground Radiotelephone service" means a
3        radio service, as that term is defined in 47 CFR 22.99,
4        in which common carriers are authorized to offer and
5        provide radio telecommunications service for hire to
6        subscribers in aircraft.
7            "Call-by-call Basis" means any method of charging
8        for telecommunications services where the price is
9        measured by individual calls.
10            "Communications Channel" means a physical or
11        virtual path of communications over which signals are
12        transmitted between or among customer channel
13        termination points.
14            "Conference bridging service" means an "ancillary
15        service" that links two or more participants of an
16        audio or video conference call and may include the
17        provision of a telephone number. "Conference bridging
18        service" does not include the "telecommunications
19        services" used to reach the conference bridge.
20            "Customer Channel Termination Point" means the
21        location where the customer either inputs or receives
22        the communications.
23            "Detailed telecommunications billing service"
24        means an "ancillary service" of separately stating
25        information pertaining to individual calls on a
26        customer's billing statement.

 

 

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1            "Directory assistance" means an "ancillary
2        service" of providing telephone number information,
3        and/or address information.
4            "Home service provider" means the facilities based
5        carrier or reseller with which the customer contracts
6        for the provision of mobile telecommunications
7        services.
8            "Mobile telecommunications service" means
9        commercial mobile radio service, as defined in Section
10        20.3 of Title 47 of the Code of Federal Regulations as
11        in effect on June 1, 1999.
12            "Place of primary use" means the street address
13        representative of where the customer's use of the
14        telecommunications service primarily occurs, which
15        must be the residential street address or the primary
16        business street address of the customer. In the case
17        of mobile telecommunications services, "place of
18        primary use" must be within the licensed service area
19        of the home service provider.
20            "Post-paid telecommunication service" means the
21        telecommunications service obtained by making a
22        payment on a call-by-call basis either through the use
23        of a credit card or payment mechanism such as a bank
24        card, travel card, credit card, or debit card, or by
25        charge made to a telephone number which is not
26        associated with the origination or termination of the

 

 

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1        telecommunications service. A post-paid calling
2        service includes telecommunications service, except a
3        prepaid wireless calling service, that would be a
4        prepaid calling service except it is not exclusively a
5        telecommunication service.
6            "Prepaid telecommunication service" means the
7        right to access exclusively telecommunications
8        services, which must be paid for in advance and which
9        enables the origination of calls using an access
10        number or authorization code, whether manually or
11        electronically dialed, and that is sold in
12        predetermined units or dollars of which the number
13        declines with use in a known amount.
14            "Prepaid Mobile telecommunication service" means a
15        telecommunications service that provides the right to
16        utilize mobile wireless service as well as other
17        non-telecommunication services, including, but not
18        limited to, ancillary services, which must be paid for
19        in advance that is sold in predetermined units or
20        dollars of which the number declines with use in a
21        known amount.
22            "Private communication service" means a
23        telecommunication service that entitles the customer
24        to exclusive or priority use of a communications
25        channel or group of channels between or among
26        termination points, regardless of the manner in which

 

 

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1        such channel or channels are connected, and includes
2        switching capacity, extension lines, stations, and any
3        other associated services that are provided in
4        connection with the use of such channel or channels.
5            "Service address" means:
6                (a) The location of the telecommunications
7            equipment to which a customer's call is charged
8            and from which the call originates or terminates,
9            regardless of where the call is billed or paid;
10                (b) If the location in line (a) is not known,
11            service address means the origination point of the
12            signal of the telecommunications services first
13            identified by either the seller's
14            telecommunications system or in information
15            received by the seller from its service provider
16            where the system used to transport such signals is
17            not that of the seller; and
18                (c) If the locations in line (a) and line (b)
19            are not known, the service address means the
20            location of the customer's place of primary use.
21            "Telecommunications service" means the electronic
22        transmission, conveyance, or routing of voice, data,
23        audio, video, or any other information or signals to a
24        point, or between or among points. The term
25        "telecommunications service" includes such
26        transmission, conveyance, or routing in which computer

 

 

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1        processing applications are used to act on the form,
2        code or protocol of the content for purposes of
3        transmission, conveyance or routing without regard to
4        whether such service is referred to as voice over
5        Internet protocol services or is classified by the
6        Federal Communications Commission as enhanced or value
7        added. "Telecommunications service" does not include:
8                (a) Data processing and information services
9            that allow data to be generated, acquired, stored,
10            processed, or retrieved and delivered by an
11            electronic transmission to a purchaser when such
12            purchaser's primary purpose for the underlying
13            transaction is the processed data or information;
14                (b) Installation or maintenance of wiring or
15            equipment on a customer's premises;
16                (c) Tangible personal property;
17                (d) Advertising, including, but not limited
18            to, directory advertising;
19                (e) Billing and collection services provided
20            to third parties;
21                (f) Internet access service;
22                (g) Radio and television audio and video
23            programming services, regardless of the medium,
24            including the furnishing of transmission,
25            conveyance and routing of such services by the
26            programming service provider. Radio and television

 

 

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1            audio and video programming services shall
2            include, but not be limited to, cable service as
3            defined in 47 USC 522(6) and audio and video
4            programming services delivered by commercial
5            mobile radio service providers, as defined in 47
6            CFR 20.3;
7                (h) "Ancillary services"; or
8                (i) Digital products "delivered
9            electronically", including, but not limited to,
10            software, music, video, reading materials or ring
11            tones.
12            "Vertical service" means an "ancillary service"
13        that is offered in connection with one or more
14        "telecommunications services", which offers advanced
15        calling features that allow customers to identify
16        callers and to manage multiple calls and call
17        connections, including "conference bridging services".
18            "Voice mail service" means an "ancillary service"
19        that enables the customer to store, send or receive
20        recorded messages. "Voice mail service" does not
21        include any "vertical services" that the customer may
22        be required to have in order to utilize the "voice mail
23        service".
24            (ii) Receipts from the sale of telecommunications
25        service sold on an individual call-by-call basis are
26        in this State if either of the following applies:

 

 

SB1582 Engrossed- 30 -LRB102 16047 HLH 21419 b

1                (a) The call both originates and terminates in
2            this State.
3                (b) The call either originates or terminates
4            in this State and the service address is located
5            in this State.
6            (iii) Receipts from the sale of postpaid
7        telecommunications service at retail are in this State
8        if the origination point of the telecommunication
9        signal, as first identified by the service provider's
10        telecommunication system or as identified by
11        information received by the seller from its service
12        provider if the system used to transport
13        telecommunication signals is not the seller's, is
14        located in this State.
15            (iv) Receipts from the sale of prepaid
16        telecommunications service or prepaid mobile
17        telecommunications service at retail are in this State
18        if the purchaser obtains the prepaid card or similar
19        means of conveyance at a location in this State.
20        Receipts from recharging a prepaid telecommunications
21        service or mobile telecommunications service is in
22        this State if the purchaser's billing information
23        indicates a location in this State.
24            (v) Receipts from the sale of private
25        communication services are in this State as follows:
26                (a) 100% of receipts from charges imposed at

 

 

SB1582 Engrossed- 31 -LRB102 16047 HLH 21419 b

1            each channel termination point in this State.
2                (b) 100% of receipts from charges for the
3            total channel mileage between each channel
4            termination point in this State.
5                (c) 50% of the total receipts from charges for
6            service segments when those segments are between 2
7            customer channel termination points, 1 of which is
8            located in this State and the other is located
9            outside of this State, which segments are
10            separately charged.
11                (d) The receipts from charges for service
12            segments with a channel termination point located
13            in this State and in two or more other states, and
14            which segments are not separately billed, are in
15            this State based on a percentage determined by
16            dividing the number of customer channel
17            termination points in this State by the total
18            number of customer channel termination points.
19            (vi) Receipts from charges for ancillary services
20        for telecommunications service sold to customers at
21        retail are in this State if the customer's primary
22        place of use of telecommunications services associated
23        with those ancillary services is in this State. If the
24        seller of those ancillary services cannot determine
25        where the associated telecommunications are located,
26        then the ancillary services shall be based on the

 

 

SB1582 Engrossed- 32 -LRB102 16047 HLH 21419 b

1        location of the purchaser.
2            (vii) Receipts to access a carrier's network or
3        from the sale of telecommunication services or
4        ancillary services for resale are in this State as
5        follows:
6                (a) 100% of the receipts from access fees
7            attributable to intrastate telecommunications
8            service that both originates and terminates in
9            this State.
10                (b) 50% of the receipts from access fees
11            attributable to interstate telecommunications
12            service if the interstate call either originates
13            or terminates in this State.
14                (c) 100% of the receipts from interstate end
15            user access line charges, if the customer's
16            service address is in this State. As used in this
17            subdivision, "interstate end user access line
18            charges" includes, but is not limited to, the
19            surcharge approved by the federal communications
20            commission and levied pursuant to 47 CFR 69.
21                (d) Gross receipts from sales of
22            telecommunication services or from ancillary
23            services for telecommunications services sold to
24            other telecommunication service providers for
25            resale shall be sourced to this State using the
26            apportionment concepts used for non-resale

 

 

SB1582 Engrossed- 33 -LRB102 16047 HLH 21419 b

1            receipts of telecommunications services if the
2            information is readily available to make that
3            determination. If the information is not readily
4            available, then the taxpayer may use any other
5            reasonable and consistent method.
6        (B-7) For taxable years ending on or after December
7    31, 2008, receipts from the sale of broadcasting services
8    are in this State if the broadcasting services are
9    received in this State. For purposes of this paragraph
10    (B-7), the following terms have the following meanings:
11            "Advertising revenue" means consideration received
12        by the taxpayer in exchange for broadcasting services
13        or allowing the broadcasting of commercials or
14        announcements in connection with the broadcasting of
15        film or radio programming, from sponsorships of the
16        programming, or from product placements in the
17        programming.
18            "Audience factor" means the ratio that the
19        audience or subscribers located in this State of a
20        station, a network, or a cable system bears to the
21        total audience or total subscribers for that station,
22        network, or cable system. The audience factor for film
23        or radio programming shall be determined by reference
24        to the books and records of the taxpayer or by
25        reference to published rating statistics provided the
26        method used by the taxpayer is consistently used from

 

 

SB1582 Engrossed- 34 -LRB102 16047 HLH 21419 b

1        year to year for this purpose and fairly represents
2        the taxpayer's activity in this State.
3            "Broadcast" or "broadcasting" or "broadcasting
4        services" means the transmission or provision of film
5        or radio programming, whether through the public
6        airwaves, by cable, by direct or indirect satellite
7        transmission, or by any other means of communication,
8        either through a station, a network, or a cable
9        system.
10            "Film" or "film programming" means the broadcast
11        on television of any and all performances, events, or
12        productions, including, but not limited to, news,
13        sporting events, plays, stories, or other literary,
14        commercial, educational, or artistic works, either
15        live or through the use of video tape, disc, or any
16        other type of format or medium. Each episode of a
17        series of films produced for television shall
18        constitute separate "film" notwithstanding that the
19        series relates to the same principal subject and is
20        produced during one or more tax periods.
21            "Radio" or "radio programming" means the broadcast
22        on radio of any and all performances, events, or
23        productions, including, but not limited to, news,
24        sporting events, plays, stories, or other literary,
25        commercial, educational, or artistic works, either
26        live or through the use of an audio tape, disc, or any

 

 

SB1582 Engrossed- 35 -LRB102 16047 HLH 21419 b

1        other format or medium. Each episode in a series of
2        radio programming produced for radio broadcast shall
3        constitute a separate "radio programming"
4        notwithstanding that the series relates to the same
5        principal subject and is produced during one or more
6        tax periods.
7                (i) In the case of advertising revenue from
8            broadcasting, the customer is the advertiser and
9            the service is received in this State if the
10            commercial domicile of the advertiser is in this
11            State.
12                (ii) In the case where film or radio
13            programming is broadcast by a station, a network,
14            or a cable system for a fee or other remuneration
15            received from the recipient of the broadcast, the
16            portion of the service that is received in this
17            State is measured by the portion of the recipients
18            of the broadcast located in this State.
19            Accordingly, the fee or other remuneration for
20            such service that is included in the Illinois
21            numerator of the sales factor is the total of
22            those fees or other remuneration received from
23            recipients in Illinois. For purposes of this
24            paragraph, a taxpayer may determine the location
25            of the recipients of its broadcast using the
26            address of the recipient shown in its contracts

 

 

SB1582 Engrossed- 36 -LRB102 16047 HLH 21419 b

1            with the recipient or using the billing address of
2            the recipient in the taxpayer's records.
3                (iii) In the case where film or radio
4            programming is broadcast by a station, a network,
5            or a cable system for a fee or other remuneration
6            from the person providing the programming, the
7            portion of the broadcast service that is received
8            by such station, network, or cable system in this
9            State is measured by the portion of recipients of
10            the broadcast located in this State. Accordingly,
11            the amount of revenue related to such an
12            arrangement that is included in the Illinois
13            numerator of the sales factor is the total fee or
14            other total remuneration from the person providing
15            the programming related to that broadcast
16            multiplied by the Illinois audience factor for
17            that broadcast.
18                (iv) In the case where film or radio
19            programming is provided by a taxpayer that is a
20            network or station to a customer for broadcast in
21            exchange for a fee or other remuneration from that
22            customer the broadcasting service is received at
23            the location of the office of the customer from
24            which the services were ordered in the regular
25            course of the customer's trade or business.
26            Accordingly, in such a case the revenue derived by

 

 

SB1582 Engrossed- 37 -LRB102 16047 HLH 21419 b

1            the taxpayer that is included in the taxpayer's
2            Illinois numerator of the sales factor is the
3            revenue from such customers who receive the
4            broadcasting service in Illinois.
5                (v) In the case where film or radio
6            programming is provided by a taxpayer that is not
7            a network or station to another person for
8            broadcasting in exchange for a fee or other
9            remuneration from that person, the broadcasting
10            service is received at the location of the office
11            of the customer from which the services were
12            ordered in the regular course of the customer's
13            trade or business. Accordingly, in such a case the
14            revenue derived by the taxpayer that is included
15            in the taxpayer's Illinois numerator of the sales
16            factor is the revenue from such customers who
17            receive the broadcasting service in Illinois.
18        (B-8) Gross receipts from winnings under the Illinois
19    Lottery Law from the assignment of a prize under Section
20    13.1 of the Illinois Lottery Law are received in this
21    State. This paragraph (B-8) applies only to taxable years
22    ending on or after December 31, 2013.
23        (B-9) For taxable years ending on or after December
24    31, 2019, gross receipts from winnings from pari-mutuel
25    wagering conducted at a wagering facility licensed under
26    the Illinois Horse Racing Act of 1975 or from winnings

 

 

SB1582 Engrossed- 38 -LRB102 16047 HLH 21419 b

1    from gambling games conducted on a riverboat or in a
2    casino or organization gaming facility licensed under the
3    Illinois Gambling Act are in this State.
4        (B-10) For taxable years ending on or after December
5    31, 2021, gross receipts from winnings from sports
6    wagering conducted in accordance with the Sports Wagering
7    Act are in this State.
8        (C) For taxable years ending before December 31, 2008,
9    sales, other than sales governed by paragraphs (B), (B-1),
10    (B-2), and (B-8) are in this State if:
11            (i) The income-producing activity is performed in
12        this State; or
13            (ii) The income-producing activity is performed
14        both within and without this State and a greater
15        proportion of the income-producing activity is
16        performed within this State than without this State,
17        based on performance costs.
18        (C-5) For taxable years ending on or after December
19    31, 2008, sales, other than sales governed by paragraphs
20    (B), (B-1), (B-2), (B-5), and (B-7), are in this State if
21    any of the following criteria are met:
22            (i) Sales from the sale or lease of real property
23        are in this State if the property is located in this
24        State.
25            (ii) Sales from the lease or rental of tangible
26        personal property are in this State if the property is

 

 

SB1582 Engrossed- 39 -LRB102 16047 HLH 21419 b

1        located in this State during the rental period. Sales
2        from the lease or rental of tangible personal property
3        that is characteristically moving property, including,
4        but not limited to, motor vehicles, rolling stock,
5        aircraft, vessels, or mobile equipment are in this
6        State to the extent that the property is used in this
7        State.
8            (iii) In the case of interest, net gains (but not
9        less than zero) and other items of income from
10        intangible personal property, the sale is in this
11        State if:
12                (a) in the case of a taxpayer who is a dealer
13            in the item of intangible personal property within
14            the meaning of Section 475 of the Internal Revenue
15            Code, the income or gain is received from a
16            customer in this State. For purposes of this
17            subparagraph, a customer is in this State if the
18            customer is an individual, trust or estate who is
19            a resident of this State and, for all other
20            customers, if the customer's commercial domicile
21            is in this State. Unless the dealer has actual
22            knowledge of the residence or commercial domicile
23            of a customer during a taxable year, the customer
24            shall be deemed to be a customer in this State if
25            the billing address of the customer, as shown in
26            the records of the dealer, is in this State; or

 

 

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1                (b) in all other cases, if the
2            income-producing activity of the taxpayer is
3            performed in this State or, if the
4            income-producing activity of the taxpayer is
5            performed both within and without this State, if a
6            greater proportion of the income-producing
7            activity of the taxpayer is performed within this
8            State than in any other state, based on
9            performance costs.
10            (iv) Sales of services are in this State if the
11        services are received in this State. For the purposes
12        of this section, gross receipts from the performance
13        of services provided to a corporation, partnership, or
14        trust may only be attributed to a state where that
15        corporation, partnership, or trust has a fixed place
16        of business. If the state where the services are
17        received is not readily determinable or is a state
18        where the corporation, partnership, or trust receiving
19        the service does not have a fixed place of business,
20        the services shall be deemed to be received at the
21        location of the office of the customer from which the
22        services were ordered in the regular course of the
23        customer's trade or business. If the ordering office
24        cannot be determined, the services shall be deemed to
25        be received at the office of the customer to which the
26        services are billed. If the taxpayer is not taxable in

 

 

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1        the state in which the services are received, the sale
2        must be excluded from both the numerator and the
3        denominator of the sales factor. The Department shall
4        adopt rules prescribing where specific types of
5        service are received, including, but not limited to,
6        publishing, and utility service.
7        (D) For taxable years ending on or after December 31,
8    1995, the following items of income shall not be included
9    in the numerator or denominator of the sales factor:
10    dividends; amounts included under Section 78 of the
11    Internal Revenue Code; and Subpart F income as defined in
12    Section 952 of the Internal Revenue Code. No inference
13    shall be drawn from the enactment of this paragraph (D) in
14    construing this Section for taxable years ending before
15    December 31, 1995.
16        (E) Paragraphs (B-1) and (B-2) shall apply to tax
17    years ending on or after December 31, 1999, provided that
18    a taxpayer may elect to apply the provisions of these
19    paragraphs to prior tax years. Such election shall be made
20    in the form and manner prescribed by the Department, shall
21    be irrevocable, and shall apply to all tax years; provided
22    that, if a taxpayer's Illinois income tax liability for
23    any tax year, as assessed under Section 903 prior to
24    January 1, 1999, was computed in a manner contrary to the
25    provisions of paragraphs (B-1) or (B-2), no refund shall
26    be payable to the taxpayer for that tax year to the extent

 

 

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1    such refund is the result of applying the provisions of
2    paragraph (B-1) or (B-2) retroactively. In the case of a
3    unitary business group, such election shall apply to all
4    members of such group for every tax year such group is in
5    existence, but shall not apply to any taxpayer for any
6    period during which that taxpayer is not a member of such
7    group.
8    (b) Insurance companies.
9        (1) In general. Except as otherwise provided by
10    paragraph (2), business income of an insurance company for
11    a taxable year shall be apportioned to this State by
12    multiplying such income by a fraction, the numerator of
13    which is the direct premiums written for insurance upon
14    property or risk in this State, and the denominator of
15    which is the direct premiums written for insurance upon
16    property or risk everywhere. For purposes of this
17    subsection, the term "direct premiums written" means the
18    total amount of direct premiums written, assessments and
19    annuity considerations as reported for the taxable year on
20    the annual statement filed by the company with the
21    Illinois Director of Insurance in the form approved by the
22    National Convention of Insurance Commissioners or such
23    other form as may be prescribed in lieu thereof.
24        (2) Reinsurance. If the principal source of premiums
25    written by an insurance company consists of premiums for
26    reinsurance accepted by it, the business income of such

 

 

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1    company shall be apportioned to this State by multiplying
2    such income by a fraction, the numerator of which is the
3    sum of (i) direct premiums written for insurance upon
4    property or risk in this State, plus (ii) premiums written
5    for reinsurance accepted in respect of property or risk in
6    this State, and the denominator of which is the sum of
7    (iii) direct premiums written for insurance upon property
8    or risk everywhere, plus (iv) premiums written for
9    reinsurance accepted in respect of property or risk
10    everywhere. For purposes of this paragraph, premiums
11    written for reinsurance accepted in respect of property or
12    risk in this State, whether or not otherwise determinable,
13    may, at the election of the company, be determined on the
14    basis of the proportion which premiums written for
15    reinsurance accepted from companies commercially domiciled
16    in Illinois bears to premiums written for reinsurance
17    accepted from all sources, or, alternatively, in the
18    proportion which the sum of the direct premiums written
19    for insurance upon property or risk in this State by each
20    ceding company from which reinsurance is accepted bears to
21    the sum of the total direct premiums written by each such
22    ceding company for the taxable year. The election made by
23    a company under this paragraph for its first taxable year
24    ending on or after December 31, 2011, shall be binding for
25    that company for that taxable year and for all subsequent
26    taxable years, and may be altered only with the written

 

 

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1    permission of the Department, which shall not be
2    unreasonably withheld.
3    (c) Financial organizations.
4        (1) In general. For taxable years ending before
5    December 31, 2008, business income of a financial
6    organization shall be apportioned to this State by
7    multiplying such income by a fraction, the numerator of
8    which is its business income from sources within this
9    State, and the denominator of which is its business income
10    from all sources. For the purposes of this subsection, the
11    business income of a financial organization from sources
12    within this State is the sum of the amounts referred to in
13    subparagraphs (A) through (E) following, but excluding the
14    adjusted income of an international banking facility as
15    determined in paragraph (2):
16            (A) Fees, commissions or other compensation for
17        financial services rendered within this State;
18            (B) Gross profits from trading in stocks, bonds or
19        other securities managed within this State;
20            (C) Dividends, and interest from Illinois
21        customers, which are received within this State;
22            (D) Interest charged to customers at places of
23        business maintained within this State for carrying
24        debit balances of margin accounts, without deduction
25        of any costs incurred in carrying such accounts; and
26            (E) Any other gross income resulting from the

 

 

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1        operation as a financial organization within this
2        State.
3        In computing the amounts referred to in paragraphs (A)
4    through (E) of this subsection, any amount received by a
5    member of an affiliated group (determined under Section
6    1504(a) of the Internal Revenue Code but without reference
7    to whether any such corporation is an "includible
8    corporation" under Section 1504(b) of the Internal Revenue
9    Code) from another member of such group shall be included
10    only to the extent such amount exceeds expenses of the
11    recipient directly related thereto.
12        (2) International Banking Facility. For taxable years
13    ending before December 31, 2008:
14            (A) Adjusted Income. The adjusted income of an
15        international banking facility is its income reduced
16        by the amount of the floor amount.
17            (B) Floor Amount. The floor amount shall be the
18        amount, if any, determined by multiplying the income
19        of the international banking facility by a fraction,
20        not greater than one, which is determined as follows:
21                (i) The numerator shall be:
22                The average aggregate, determined on a
23            quarterly basis, of the financial organization's
24            loans to banks in foreign countries, to foreign
25            domiciled borrowers (except where secured
26            primarily by real estate) and to foreign

 

 

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1            governments and other foreign official
2            institutions, as reported for its branches,
3            agencies and offices within the state on its
4            "Consolidated Report of Condition", Schedule A,
5            Lines 2.c., 5.b., and 7.a., which was filed with
6            the Federal Deposit Insurance Corporation and
7            other regulatory authorities, for the year 1980,
8            minus
9                The average aggregate, determined on a
10            quarterly basis, of such loans (other than loans
11            of an international banking facility), as reported
12            by the financial institution for its branches,
13            agencies and offices within the state, on the
14            corresponding Schedule and lines of the
15            Consolidated Report of Condition for the current
16            taxable year, provided, however, that in no case
17            shall the amount determined in this clause (the
18            subtrahend) exceed the amount determined in the
19            preceding clause (the minuend); and
20                (ii) the denominator shall be the average
21            aggregate, determined on a quarterly basis, of the
22            international banking facility's loans to banks in
23            foreign countries, to foreign domiciled borrowers
24            (except where secured primarily by real estate)
25            and to foreign governments and other foreign
26            official institutions, which were recorded in its

 

 

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1            financial accounts for the current taxable year.
2            (C) Change to Consolidated Report of Condition and
3        in Qualification. In the event the Consolidated Report
4        of Condition which is filed with the Federal Deposit
5        Insurance Corporation and other regulatory authorities
6        is altered so that the information required for
7        determining the floor amount is not found on Schedule
8        A, lines 2.c., 5.b. and 7.a., the financial
9        institution shall notify the Department and the
10        Department may, by regulations or otherwise, prescribe
11        or authorize the use of an alternative source for such
12        information. The financial institution shall also
13        notify the Department should its international banking
14        facility fail to qualify as such, in whole or in part,
15        or should there be any amendment or change to the
16        Consolidated Report of Condition, as originally filed,
17        to the extent such amendment or change alters the
18        information used in determining the floor amount.
19        (3) For taxable years ending on or after December 31,
20    2008, the business income of a financial organization
21    shall be apportioned to this State by multiplying such
22    income by a fraction, the numerator of which is its gross
23    receipts from sources in this State or otherwise
24    attributable to this State's marketplace and the
25    denominator of which is its gross receipts everywhere
26    during the taxable year. "Gross receipts" for purposes of

 

 

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1    this subparagraph (3) means gross income, including net
2    taxable gain on disposition of assets, including
3    securities and money market instruments, when derived from
4    transactions and activities in the regular course of the
5    financial organization's trade or business. The following
6    examples are illustrative:
7            (i) Receipts from the lease or rental of real or
8        tangible personal property are in this State if the
9        property is located in this State during the rental
10        period. Receipts from the lease or rental of tangible
11        personal property that is characteristically moving
12        property, including, but not limited to, motor
13        vehicles, rolling stock, aircraft, vessels, or mobile
14        equipment are from sources in this State to the extent
15        that the property is used in this State.
16            (ii) Interest income, commissions, fees, gains on
17        disposition, and other receipts from assets in the
18        nature of loans that are secured primarily by real
19        estate or tangible personal property are from sources
20        in this State if the security is located in this State.
21            (iii) Interest income, commissions, fees, gains on
22        disposition, and other receipts from consumer loans
23        that are not secured by real or tangible personal
24        property are from sources in this State if the debtor
25        is a resident of this State.
26            (iv) Interest income, commissions, fees, gains on

 

 

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1        disposition, and other receipts from commercial loans
2        and installment obligations that are not secured by
3        real or tangible personal property are from sources in
4        this State if the proceeds of the loan are to be
5        applied in this State. If it cannot be determined
6        where the funds are to be applied, the income and
7        receipts are from sources in this State if the office
8        of the borrower from which the loan was negotiated in
9        the regular course of business is located in this
10        State. If the location of this office cannot be
11        determined, the income and receipts shall be excluded
12        from the numerator and denominator of the sales
13        factor.
14            (v) Interest income, fees, gains on disposition,
15        service charges, merchant discount income, and other
16        receipts from credit card receivables are from sources
17        in this State if the card charges are regularly billed
18        to a customer in this State.
19            (vi) Receipts from the performance of services,
20        including, but not limited to, fiduciary, advisory,
21        and brokerage services, are in this State if the
22        services are received in this State within the meaning
23        of subparagraph (a)(3)(C-5)(iv) of this Section.
24            (vii) Receipts from the issuance of travelers
25        checks and money orders are from sources in this State
26        if the checks and money orders are issued from a

 

 

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1        location within this State.
2            (viii) Receipts from investment assets and
3        activities and trading assets and activities are
4        included in the receipts factor as follows:
5                (1) Interest, dividends, net gains (but not
6            less than zero) and other income from investment
7            assets and activities from trading assets and
8            activities shall be included in the receipts
9            factor. Investment assets and activities and
10            trading assets and activities include, but are not
11            limited to: investment securities; trading account
12            assets; federal funds; securities purchased and
13            sold under agreements to resell or repurchase;
14            options; futures contracts; forward contracts;
15            notional principal contracts such as swaps;
16            equities; and foreign currency transactions. With
17            respect to the investment and trading assets and
18            activities described in subparagraphs (A) and (B)
19            of this paragraph, the receipts factor shall
20            include the amounts described in such
21            subparagraphs.
22                    (A) The receipts factor shall include the
23                amount by which interest from federal funds
24                sold and securities purchased under resale
25                agreements exceeds interest expense on federal
26                funds purchased and securities sold under

 

 

SB1582 Engrossed- 51 -LRB102 16047 HLH 21419 b

1                repurchase agreements.
2                    (B) The receipts factor shall include the
3                amount by which interest, dividends, gains and
4                other income from trading assets and
5                activities, including, but not limited to,
6                assets and activities in the matched book, in
7                the arbitrage book, and foreign currency
8                transactions, exceed amounts paid in lieu of
9                interest, amounts paid in lieu of dividends,
10                and losses from such assets and activities.
11                (2) The numerator of the receipts factor
12            includes interest, dividends, net gains (but not
13            less than zero), and other income from investment
14            assets and activities and from trading assets and
15            activities described in paragraph (1) of this
16            subsection that are attributable to this State.
17                    (A) The amount of interest, dividends, net
18                gains (but not less than zero), and other
19                income from investment assets and activities
20                in the investment account to be attributed to
21                this State and included in the numerator is
22                determined by multiplying all such income from
23                such assets and activities by a fraction, the
24                numerator of which is the gross income from
25                such assets and activities which are properly
26                assigned to a fixed place of business of the

 

 

SB1582 Engrossed- 52 -LRB102 16047 HLH 21419 b

1                taxpayer within this State and the denominator
2                of which is the gross income from all such
3                assets and activities.
4                    (B) The amount of interest from federal
5                funds sold and purchased and from securities
6                purchased under resale agreements and
7                securities sold under repurchase agreements
8                attributable to this State and included in the
9                numerator is determined by multiplying the
10                amount described in subparagraph (A) of
11                paragraph (1) of this subsection from such
12                funds and such securities by a fraction, the
13                numerator of which is the gross income from
14                such funds and such securities which are
15                properly assigned to a fixed place of business
16                of the taxpayer within this State and the
17                denominator of which is the gross income from
18                all such funds and such securities.
19                    (C) The amount of interest, dividends,
20                gains, and other income from trading assets
21                and activities, including, but not limited to,
22                assets and activities in the matched book, in
23                the arbitrage book and foreign currency
24                transactions (but excluding amounts described
25                in subparagraphs (A) or (B) of this
26                paragraph), attributable to this State and

 

 

SB1582 Engrossed- 53 -LRB102 16047 HLH 21419 b

1                included in the numerator is determined by
2                multiplying the amount described in
3                subparagraph (B) of paragraph (1) of this
4                subsection by a fraction, the numerator of
5                which is the gross income from such trading
6                assets and activities which are properly
7                assigned to a fixed place of business of the
8                taxpayer within this State and the denominator
9                of which is the gross income from all such
10                assets and activities.
11                    (D) Properly assigned, for purposes of
12                this paragraph (2) of this subsection, means
13                the investment or trading asset or activity is
14                assigned to the fixed place of business with
15                which it has a preponderance of substantive
16                contacts. An investment or trading asset or
17                activity assigned by the taxpayer to a fixed
18                place of business without the State shall be
19                presumed to have been properly assigned if:
20                        (i) the taxpayer has assigned, in the
21                    regular course of its business, such asset
22                    or activity on its records to a fixed
23                    place of business consistent with federal
24                    or state regulatory requirements;
25                        (ii) such assignment on its records is
26                    based upon substantive contacts of the

 

 

SB1582 Engrossed- 54 -LRB102 16047 HLH 21419 b

1                    asset or activity to such fixed place of
2                    business; and
3                        (iii) the taxpayer uses such records
4                    reflecting assignment of such assets or
5                    activities for the filing of all state and
6                    local tax returns for which an assignment
7                    of such assets or activities to a fixed
8                    place of business is required.
9                    (E) The presumption of proper assignment
10                of an investment or trading asset or activity
11                provided in subparagraph (D) of paragraph (2)
12                of this subsection may be rebutted upon a
13                showing by the Department, supported by a
14                preponderance of the evidence, that the
15                preponderance of substantive contacts
16                regarding such asset or activity did not occur
17                at the fixed place of business to which it was
18                assigned on the taxpayer's records. If the
19                fixed place of business that has a
20                preponderance of substantive contacts cannot
21                be determined for an investment or trading
22                asset or activity to which the presumption in
23                subparagraph (D) of paragraph (2) of this
24                subsection does not apply or with respect to
25                which that presumption has been rebutted, that
26                asset or activity is properly assigned to the

 

 

SB1582 Engrossed- 55 -LRB102 16047 HLH 21419 b

1                state in which the taxpayer's commercial
2                domicile is located. For purposes of this
3                subparagraph (E), it shall be presumed,
4                subject to rebuttal, that taxpayer's
5                commercial domicile is in the state of the
6                United States or the District of Columbia to
7                which the greatest number of employees are
8                regularly connected with the management of the
9                investment or trading income or out of which
10                they are working, irrespective of where the
11                services of such employees are performed, as
12                of the last day of the taxable year.
13        (4) (Blank).
14        (5) (Blank).
15    (c-1) Federally regulated exchanges. For taxable years
16ending on or after December 31, 2012, business income of a
17federally regulated exchange shall, at the option of the
18federally regulated exchange, be apportioned to this State by
19multiplying such income by a fraction, the numerator of which
20is its business income from sources within this State, and the
21denominator of which is its business income from all sources.
22For purposes of this subsection, the business income within
23this State of a federally regulated exchange is the sum of the
24following:
25        (1) Receipts attributable to transactions executed on
26    a physical trading floor if that physical trading floor is

 

 

SB1582 Engrossed- 56 -LRB102 16047 HLH 21419 b

1    located in this State.
2        (2) Receipts attributable to all other matching,
3    execution, or clearing transactions, including without
4    limitation receipts from the provision of matching,
5    execution, or clearing services to another entity,
6    multiplied by (i) for taxable years ending on or after
7    December 31, 2012 but before December 31, 2013, 63.77%;
8    and (ii) for taxable years ending on or after December 31,
9    2013, 27.54%.
10        (3) All other receipts not governed by subparagraphs
11    (1) or (2) of this subsection (c-1), to the extent the
12    receipts would be characterized as "sales in this State"
13    under item (3) of subsection (a) of this Section.
14    "Federally regulated exchange" means (i) a "registered
15entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
16or (C), (ii) an "exchange" or "clearing agency" within the
17meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
18entities regulated under any successor regulatory structure to
19the foregoing, and (iv) all taxpayers who are members of the
20same unitary business group as a federally regulated exchange,
21determined without regard to the prohibition in Section
221501(a)(27) of this Act against including in a unitary
23business group taxpayers who are ordinarily required to
24apportion business income under different subsections of this
25Section; provided that this subparagraph (iv) shall apply only
26if 50% or more of the business receipts of the unitary business

 

 

SB1582 Engrossed- 57 -LRB102 16047 HLH 21419 b

1group determined by application of this subparagraph (iv) for
2the taxable year are attributable to the matching, execution,
3or clearing of transactions conducted by an entity described
4in subparagraph (i), (ii), or (iii) of this paragraph.
5    In no event shall the Illinois apportionment percentage
6computed in accordance with this subsection (c-1) for any
7taxpayer for any tax year be less than the Illinois
8apportionment percentage computed under this subsection (c-1)
9for that taxpayer for the first full tax year ending on or
10after December 31, 2013 for which this subsection (c-1)
11applied to the taxpayer.
12    (d) Transportation services. For taxable years ending
13before December 31, 2008, business income derived from
14furnishing transportation services shall be apportioned to
15this State in accordance with paragraphs (1) and (2):
16        (1) Such business income (other than that derived from
17    transportation by pipeline) shall be apportioned to this
18    State by multiplying such income by a fraction, the
19    numerator of which is the revenue miles of the person in
20    this State, and the denominator of which is the revenue
21    miles of the person everywhere. For purposes of this
22    paragraph, a revenue mile is the transportation of 1
23    passenger or 1 net ton of freight the distance of 1 mile
24    for a consideration. Where a person is engaged in the
25    transportation of both passengers and freight, the
26    fraction above referred to shall be determined by means of

 

 

SB1582 Engrossed- 58 -LRB102 16047 HLH 21419 b

1    an average of the passenger revenue mile fraction and the
2    freight revenue mile fraction, weighted to reflect the
3    person's
4            (A) relative railway operating income from total
5        passenger and total freight service, as reported to
6        the Interstate Commerce Commission, in the case of
7        transportation by railroad, and
8            (B) relative gross receipts from passenger and
9        freight transportation, in case of transportation
10        other than by railroad.
11        (2) Such business income derived from transportation
12    by pipeline shall be apportioned to this State by
13    multiplying such income by a fraction, the numerator of
14    which is the revenue miles of the person in this State, and
15    the denominator of which is the revenue miles of the
16    person everywhere. For the purposes of this paragraph, a
17    revenue mile is the transportation by pipeline of 1 barrel
18    of oil, 1,000 cubic feet of gas, or of any specified
19    quantity of any other substance, the distance of 1 mile
20    for a consideration.
21        (3) For taxable years ending on or after December 31,
22    2008, business income derived from providing
23    transportation services other than airline services shall
24    be apportioned to this State by using a fraction, (a) the
25    numerator of which shall be (i) all receipts from any
26    movement or shipment of people, goods, mail, oil, gas, or

 

 

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1    any other substance (other than by airline) that both
2    originates and terminates in this State, plus (ii) that
3    portion of the person's gross receipts from movements or
4    shipments of people, goods, mail, oil, gas, or any other
5    substance (other than by airline) that originates in one
6    state or jurisdiction and terminates in another state or
7    jurisdiction, that is determined by the ratio that the
8    miles traveled in this State bears to total miles
9    everywhere and (b) the denominator of which shall be all
10    revenue derived from the movement or shipment of people,
11    goods, mail, oil, gas, or any other substance (other than
12    by airline). Where a taxpayer is engaged in the
13    transportation of both passengers and freight, the
14    fraction above referred to shall first be determined
15    separately for passenger miles and freight miles. Then an
16    average of the passenger miles fraction and the freight
17    miles fraction shall be weighted to reflect the
18    taxpayer's:
19            (A) relative railway operating income from total
20        passenger and total freight service, as reported to
21        the Surface Transportation Board, in the case of
22        transportation by railroad; and
23            (B) relative gross receipts from passenger and
24        freight transportation, in case of transportation
25        other than by railroad.
26        (4) For taxable years ending on or after December 31,

 

 

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1    2008, business income derived from furnishing airline
2    transportation services shall be apportioned to this State
3    by multiplying such income by a fraction, the numerator of
4    which is the revenue miles of the person in this State, and
5    the denominator of which is the revenue miles of the
6    person everywhere. For purposes of this paragraph, a
7    revenue mile is the transportation of one passenger or one
8    net ton of freight the distance of one mile for a
9    consideration. If a person is engaged in the
10    transportation of both passengers and freight, the
11    fraction above referred to shall be determined by means of
12    an average of the passenger revenue mile fraction and the
13    freight revenue mile fraction, weighted to reflect the
14    person's relative gross receipts from passenger and
15    freight airline transportation.
16    (e) Combined apportionment. Where 2 or more persons are
17engaged in a unitary business as described in subsection
18(a)(27) of Section 1501, a part of which is conducted in this
19State by one or more members of the group, the business income
20attributable to this State by any such member or members shall
21be apportioned by means of the combined apportionment method.
22    (f) Alternative allocation. If the allocation and
23apportionment provisions of subsections (a) through (e) and of
24subsection (h) do not, for taxable years ending before
25December 31, 2008, fairly represent the extent of a person's
26business activity in this State, or, for taxable years ending

 

 

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1on or after December 31, 2008, fairly represent the market for
2the person's goods, services, or other sources of business
3income, the person may petition for, or the Director may,
4without a petition, permit or require, in respect of all or any
5part of the person's business activity, if reasonable:
6        (1) Separate accounting;
7        (2) The exclusion of any one or more factors;
8        (3) The inclusion of one or more additional factors
9    which will fairly represent the person's business
10    activities or market in this State; or
11        (4) The employment of any other method to effectuate
12    an equitable allocation and apportionment of the person's
13    business income.
14    (g) Cross reference. For allocation of business income by
15residents, see Section 301(a).
16    (h) For tax years ending on or after December 31, 1998, the
17apportionment factor of persons who apportion their business
18income to this State under subsection (a) shall be equal to:
19        (1) for tax years ending on or after December 31, 1998
20    and before December 31, 1999, 16 2/3% of the property
21    factor plus 16 2/3% of the payroll factor plus 66 2/3% of
22    the sales factor;
23        (2) for tax years ending on or after December 31, 1999
24    and before December 31, 2000, 8 1/3% of the property
25    factor plus 8 1/3% of the payroll factor plus 83 1/3% of
26    the sales factor;

 

 

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1        (3) for tax years ending on or after December 31,
2    2000, the sales factor.
3If, in any tax year ending on or after December 31, 1998 and
4before December 31, 2000, the denominator of the payroll,
5property, or sales factor is zero, the apportionment factor
6computed in paragraph (1) or (2) of this subsection for that
7year shall be divided by an amount equal to 100% minus the
8percentage weight given to each factor whose denominator is
9equal to zero.
10(Source: P.A. 100-201, eff. 8-18-17; 101-31, eff. 6-28-19;
11101-585, eff. 8-26-19; revised 9-12-19.)
 
12    (35 ILCS 5/710)  (from Ch. 120, par. 7-710)
13    Sec. 710. Withholding from lottery, wagering, and gambling
14winnings.
15    (a) In general.
16        (1) Any person making a payment to a resident or
17    nonresident of winnings under the Illinois Lottery Law and
18    not required to withhold Illinois income tax from such
19    payment under Subsection (b) of Section 701 of this Act
20    because those winnings are not subject to Federal income
21    tax withholding, must withhold Illinois income tax from
22    such payment at a rate equal to the percentage tax rate for
23    individuals provided in subsection (b) of Section 201,
24    provided that withholding is not required if such payment
25    of winnings is less than $1,000.

 

 

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1        (2) In the case of an assignment of a lottery prize
2    under Section 13.1 of the Illinois Lottery Law, any person
3    making a payment of the purchase price after December 31,
4    2013, shall withhold from the amount of each payment at a
5    rate equal to the percentage tax rate for individuals
6    provided in subsection (b) of Section 201.
7        (3) Any person making a payment after December 31,
8    2019 to a resident or nonresident of winnings from
9    pari-mutuel wagering conducted at a wagering facility
10    licensed under the Illinois Horse Racing Act of 1975 or
11    from gambling games conducted on a riverboat or in a
12    casino or organization gaming facility licensed under the
13    Illinois Gambling Act must withhold Illinois income tax
14    from such payment at a rate equal to the percentage tax
15    rate for individuals provided in subsection (b) of Section
16    201, provided that the person making the payment is
17    required to withhold under Section 3402(q) of the Internal
18    Revenue Code.
19        (4) Any person making a payment after December 31,
20    2021 to a resident or nonresident of winnings from sports
21    wagering conducted in accordance with the Sports Wagering
22    Act must withhold Illinois income tax from such payment at
23    a rate equal to the percentage tax rate for individuals
24    provided in subsection (b) of Section 201, provided that
25    the person making the payment is required to withhold
26    under Section 3402(q) of the Internal Revenue Code.

 

 

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1    (b) Credit for taxes withheld. Any amount withheld under
2Subsection (a) shall be a credit against the Illinois income
3tax liability of the person to whom the payment of winnings was
4made for the taxable year in which that person incurred an
5Illinois income tax liability with respect to those winnings.
6(Source: P.A. 101-31, eff. 6-28-19.)
 
7    (35 ILCS 5/902)  (from Ch. 120, par. 9-902)
8    Sec. 902. Notice and Demand.
9    (a) In general. Except as provided in subsection (b) the
10Director shall, as soon as practicable after an amount payable
11under this Act is deemed assessed (as provided in Section
12903), give notice to each person liable for any unpaid portion
13of such assessment, stating the amount unpaid and demanding
14payment thereof. In the case of tax deemed assessed with the
15filing of a return, the Director shall give notice no later
16than 3 years after the date the return was filed. Upon receipt
17of any notice and demand there shall be paid at the place and
18time stated in such notice the amount stated in such notice.
19Such notice shall be left at the dwelling or usual place of
20business of such person or shall be sent by mail to the
21person's last known address.
22    (b) Judicial review. In the case of a deficiency deemed
23assessed under Section 903(a)(2) after the filing of a
24protest, notice and demand shall not be made with respect to
25such assessment until all proceedings in court for the review

 

 

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1of such assessment have terminated or the time for the taking
2thereof has expired without such proceedings being instituted.
3    (c) Action for recovery of taxes. At any time that the
4Department might commence proceedings for a levy under Section
51109, regardless of whether a notice of lien was filed under
6the provisions of Section 1103, it may bring an action in any
7court of competent jurisdiction within or without this State
8in the name of the people of this State to recover the amount
9of any taxes, penalties and interest due and unpaid under this
10Act. In such action, the certificate of the Department showing
11the amount of the delinquency shall be prima facie evidence of
12the correctness of such amount, its assessment and of the
13compliance by the Department with all the provisions of this
14Act.
15    (d) Sales or transfers outside the usual course of
16business-Report-Payment of Tax - Rights and duties of
17purchaser or transferee - penalty. If any taxpayer, outside
18the usual course of his business, sells or transfers the major
19part of any one or more of (A) the stock of goods which he is
20engaged in the business of selling, or (B) the furniture or
21fixtures, or (C) the machinery and equipment, or (D) the real
22property, of any business that is subject to the provisions of
23this Act, the purchaser or transferee of such assets shall, no
24later than 10 business days before after the sale or transfer,
25file a notice of sale or transfer of business assets with the
26Chicago office of the Department disclosing the name and

 

 

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1address of the seller or transferor, the name and address of
2the purchaser or transferee, the date of the sale or transfer,
3a copy of the sales contract and financing agreements which
4shall include a description of the property sold or
5transferred, the amount of the purchase price or a statement
6of other consideration for the sale or transfer, and the terms
7for payment of the purchase price, and such other information
8as the Department may reasonably require. If the purchaser or
9transferee fails to file the above described notice of sale
10with the Department within the prescribed time, the purchaser
11or transferee shall be personally liable to the Department for
12the amount owed hereunder by the seller or transferor but
13unpaid, up to the amount of the reasonable value of the
14property acquired by the purchaser or transferee. The
15purchaser or transferee shall pay the Department the amount of
16tax, penalties, and interest owed by the seller or transferor
17under this Act, to the extent they have not been paid by the
18seller or transferor. The seller or transferor, or the
19purchaser or transferee, at least 10 business days before the
20date of the sale or transfer, may notify the Department of the
21intended sale or transfer and request the Department to make a
22determination as to whether the seller or transferor owes any
23tax, penalty or interest due under this Act. The Department
24shall take such steps as may be appropriate to comply with such
25request.
26    Any order issued by the Department pursuant to this

 

 

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1Section to withhold from the purchase price shall be issued
2within 10 business days after the Department receives
3notification of a sale as provided in this Section. The
4purchaser or transferee shall withhold such portion of the
5purchase price as may be directed by the Department, but not to
6exceed a minimum amount varying by type of business, as
7determined by the Department pursuant to regulations, plus
8twice the outstanding unpaid liabilities and twice the average
9liability of preceding filings times the number of unfiled
10returns which were not filed when due, to cover the amount of
11all tax, penalty, and interest due and unpaid by the seller or
12transferor under this Act or, if the payment of money or
13property is not involved, shall withhold the performance of
14the condition that constitutes the consideration for the sale
15or transfer. Within 60 business days after issuance of the
16initial order to withhold, the Department shall provide
17written notice to the purchaser or transferee of the actual
18amount of all taxes, penalties and interest then due and
19whether or not additional amounts may become due as a result of
20unpaid taxes required to be withheld by an employer, returns
21which were not filed when due, pending assessments and audits
22not completed. The purchaser or transferee shall continue to
23withhold the amount directed to be withheld by the initial
24order or such lesser amount as is specified by the final
25withholding order or to withhold the performance of the
26condition which constitutes the consideration for the sale or

 

 

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1transfer until the purchaser or transferee receives from the
2Department a certificate showing that no unpaid tax, penalty
3or interest is due from the seller or transferor under this
4Act.
5    The purchaser or transferee is relieved of any duty to
6continue to withhold from the purchase price and of any
7liability for tax, penalty, or interest due hereunder from the
8seller or transferor if the Department fails to notify the
9purchaser or transferee in the manner provided herein of the
10amount to be withheld within 10 business days after the sale or
11transfer has been reported to the Department or within 60
12business days after issuance of the initial order to withhold,
13as the case may be. The Department shall have the right to
14determine amounts claimed on an estimated basis to allow for
15periods for which returns were not filed when due, pending
16assessments and audits not completed, however the purchaser or
17transferee shall be personally liable only for the actual
18amount due when determined.
19    If the seller or transferor has failed to pay the tax,
20penalty, and interest due from him hereunder and the
21Department makes timely claim therefor against the purchaser
22or transferee as hereinabove provided, then the purchaser or
23transferee shall pay to the Department the amount so withheld
24from the purchase price. If the purchaser or transferee fails
25to comply with the requirements of this Section, the purchaser
26or transferee shall be personally liable to the Department for

 

 

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1the amount owed hereunder by the seller or transferor up to the
2amount of the reasonable value of the property acquired by the
3purchaser or transferee.
4    Any person who shall acquire any property or rights
5thereto which, at the time of such acquisition, is subject to a
6valid lien in favor of the Department, shall be personally
7liable to the Department for a sum equal to the amount of
8taxes, penalties and interests, secured by such lien, but not
9to exceed the reasonable value of such property acquired by
10him.
11(Source: P.A. 94-776, eff. 5-19-06.)