Illinois General Assembly - Full Text of HB4000
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Full Text of HB4000  103rd General Assembly




State of Illinois
2023 and 2024


Introduced 2/28/2023, by Rep. Robert "Bob" Rita


New Act

    Creates the Financial Transaction Tax Act. Imposes a tax on the privilege of engaging in financial transactions involving the financial assets of a hedge fund on any of the following exchanges or boards of trade: the Chicago Stock Exchange; the Chicago Mercantile Exchange; the Chicago Board of Trade; or the Chicago Board Options Exchange. Provides that the tax is imposed at a rate of $0.002 for every $1 of value traded. Effective immediately.

LRB103 29567 HLH 57540 b





HB4000LRB103 29567 HLH 57540 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 1. Short title. This Act may be cited as the
5Financial Transaction Tax Act.
6    Section 3. Definitions. As used in this Act:
7    "Department" means the Department of Revenue.
8    "Financial transaction" means a transaction involving the
9financial assets of a hedge fund where the buyer or the seller
10is a business entity.
11    Section 5. Tax imposed; definitions.
12    (a) Beginning January 1, 2024 and until January 1, 2029, a
13tax is imposed on the privilege of engaging in a financial
14transaction on any of the following exchanges or boards of
15trade: the Chicago Stock Exchange; the Chicago Mercantile
16Exchange; the Chicago Board of Trade; or the Chicago Board
17Options Exchange. The tax is imposed at a rate of $0.002 per
18every $1 of value traded. The tax shall be paid by the trading
19facility. All transactions executed via open outcry that are
20physically filled on the exchange floor are exempt from the
22    (b) The tax shall be collected by the exchange or board of



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1trade and shall be remitted to the Department of Revenue
2biannually in the form and manner required by the Department.
3The exchange or board of trade may retain 5% of the amount
4collected, which is allowed to reimburse the exchange or board
5of trade for the expenses incurred in keeping records,
6preparing and filing returns, remitting the tax, and supplying
7data to the Department on request.
8    (c) Subject to the provisions of subsection (b), the tax
9imposed under this Act, and all civil penalties that may be
10assessed as an incident thereof, shall be administered,
11collected, and enforced by the Department of Revenue, and
12commodity brokers shall register with the Department in the
13same manner as required under the Retailers' Occupation Tax
14Act insofar as may be applicable. The Department of Revenue
15has full power to administer and enforce this Act, to collect
16all taxes and penalties due under this Act, to dispose of taxes
17and penalties so collected as provided in this Act, and to
18determine all rights to credit memoranda arising on account of
19the erroneous payment of a tax or penalty under this Act. The
20Department of Revenue shall pay over to the State Treasurer
21all moneys remitted to the Department under this Act for
22deposit into the General Revenue Fund.
23    Section 10. Recordkeeping. Each exchange or board of trade
24that is subject to the tax under this Act shall keep records
25and books of all transactions giving rise to a tax under this



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1Act. Those books and records shall be kept in the English
2language and shall, at all times during business hours of the
3day, be subject to inspection by the Department or its duly
4authorized agents and employees.
5    Section 15. Retailers' Occupation Tax Act and Uniform
6Penalty and Interest Act adopted. The provisions of Sections
74, 5, 5f, 5i, 6, 6a, 6b, 6c, 8, 9, 10, and 12 of the Retailers'
8Occupation Tax Act which are not inconsistent with this Act,
9and Section 3-7 of the Uniform Penalty and Interest Act, shall
10apply as far as practicable to the subject matter of this Act
11to the same extent as if those provisions were included in this
13    Section 20. Rules. The Department shall adopt
14administrative rules to implement and administer this Act.
15Initial rules may be adopted as emergency rules.
16    Section 25. Interstate commerce exemption. No tax is
17imposed under this Act upon the privilege of engaging in a
18business in interstate commerce or otherwise when the business
19may not, under the Constitution and statutes of the United
20States, be made the subject of taxation by this State.
21    Section 99. Effective date. This Act takes effect upon
22becoming law.