Full Text of SB1257 101st General Assembly
SB1257enr 101ST GENERAL ASSEMBLY |
| | SB1257 Enrolled | | LRB101 09340 HLH 54436 b |
|
| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by | 5 | | changing Section 205 as follows:
| 6 | | (35 ILCS 5/205) (from Ch. 120, par. 2-205)
| 7 | | Sec. 205. Exempt organizations.
| 8 | | (a) Charitable, etc. organizations. For tax years | 9 | | beginning before January 1, 2019, the The base income of an
| 10 | | organization which is exempt from the federal income tax by | 11 | | reason of the Internal Revenue Code shall not be determined
| 12 | | under section 203 of this Act, but shall be its unrelated | 13 | | business
taxable income as determined under section 512 of the | 14 | | Internal Revenue
Code, without any deduction for the tax | 15 | | imposed by this Act. The
standard exemption provided by section | 16 | | 204 of this Act shall not be
allowed in determining the net | 17 | | income of an organization to which this
subsection applies.
| 18 | | For tax years beginning on or after January 1, 2019, the | 19 | | base income of an organization which is exempt from the federal | 20 | | income tax by reason of the Internal Revenue Code shall not be | 21 | | determined under Section 203 of this Act, but shall be its | 22 | | unrelated business taxable income as determined under Section | 23 | | 512 of the Internal Revenue Code, without regard to Section |
| | | SB1257 Enrolled | - 2 - | LRB101 09340 HLH 54436 b |
|
| 1 | | 512(a)(7) of the Internal Revenue Code and without any | 2 | | deduction for the tax imposed by this Act. The standard | 3 | | exemption provided by Section 204 of this Act shall not be | 4 | | allowed in determining the net income of an organization to | 5 | | which this subsection applies. This exclusion is exempt from | 6 | | the provisions of Section 250. | 7 | | (b) Partnerships. A partnership as such shall not be | 8 | | subject to
the tax imposed by subsection 201 (a) and (b) of | 9 | | this Act, but shall be
subject to the replacement tax imposed | 10 | | by subsection 201 (c) and (d) of
this Act and shall compute its | 11 | | base income as described in subsection (d)
of Section 203 of | 12 | | this Act. For taxable years ending on or after December 31, | 13 | | 2004, an investment partnership, as defined in Section | 14 | | 1501(a)(11.5) of this Act, shall not be subject to the tax | 15 | | imposed by subsections (c) and (d) of Section 201 of this Act.
| 16 | | A partnership shall file such returns and other
information at | 17 | | such
time and in such manner as may be required under Article 5 | 18 | | of this Act.
The partners in a partnership shall be liable for | 19 | | the replacement tax imposed
by subsection 201 (c) and (d) of | 20 | | this Act on such partnership, to the extent
such tax is not | 21 | | paid by the partnership, as provided under the laws of Illinois
| 22 | | governing the liability of partners for the obligations of a | 23 | | partnership.
Persons carrying on business as partners shall be | 24 | | liable for the tax
imposed by subsection 201 (a) and (b) of | 25 | | this Act only in their separate
or individual capacities.
| 26 | | (c) Subchapter S corporations. A Subchapter S corporation |
| | | SB1257 Enrolled | - 3 - | LRB101 09340 HLH 54436 b |
|
| 1 | | shall not
be subject to the tax imposed by subsection 201 (a) | 2 | | and
(b) of this Act but shall be subject to the replacement tax | 3 | | imposed by subsection
201 (c) and (d) of this Act and shall | 4 | | file such returns
and other information
at such time and in | 5 | | such manner as may be required under Article 5 of this Act.
| 6 | | (d) Combat zone, terrorist attack, and certain other | 7 | | deaths. An individual relieved from the federal
income tax for | 8 | | any taxable year by reason of section 692 of the Internal
| 9 | | Revenue Code shall not be subject to the tax imposed by this | 10 | | Act for
such taxable year.
| 11 | | (e) Certain trusts. A common trust fund described in | 12 | | Section 584
of the Internal Revenue Code, and any other trust | 13 | | to the extent that the
grantor is treated as the owner thereof | 14 | | under sections 671 through 678
of the Internal Revenue Code | 15 | | shall not be subject to the tax imposed by
this Act.
| 16 | | (f) Certain business activities. A person not otherwise | 17 | | subject to the tax
imposed by this Act shall not become subject | 18 | | to the tax imposed by this Act by
reason of:
| 19 | | (1) that person's ownership of tangible personal | 20 | | property located at the
premises of
a printer in this State | 21 | | with which the person has contracted for printing, or
| 22 | | (2) activities of the person's employees or agents | 23 | | located solely at the
premises of a printer and related to | 24 | | quality control, distribution, or printing
services | 25 | | performed by a printer in the State with which the person | 26 | | has
contracted for printing.
|
| | | SB1257 Enrolled | - 4 - | LRB101 09340 HLH 54436 b |
|
| 1 | | (g) A nonprofit risk organization that holds a certificate | 2 | | of authority under Article VIID of the Illinois Insurance Code | 3 | | is exempt from the tax imposed under this Act with respect to | 4 | | its activities or operations in furtherance of the powers | 5 | | conferred upon it under that Article VIID of the Illinois | 6 | | Insurance Code.
| 7 | | (Source: P.A. 97-507, eff. 8-23-11.)
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.
|
|