Full Text of HB4000 103rd General Assembly
HB4000 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB4000 Introduced 2/28/2023, by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED: |
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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.
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| | A BILL FOR |
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| | | HB4000 | | LRB103 29567 HLH 57540 b |
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| 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 1. Short title. This Act may be cited as the | 5 | | Financial 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 | 9 | | financial assets of a hedge fund where the buyer or the seller | 10 | | is a business entity. | 11 | | Section 5. Tax imposed; definitions. | 12 | | (a) Beginning January 1, 2024 and until January 1, 2029, a | 13 | | tax is imposed on the privilege of engaging in a financial | 14 | | transaction on any of the following exchanges or boards of | 15 | | trade: the Chicago Stock Exchange; the Chicago Mercantile | 16 | | Exchange; the Chicago Board of Trade; or the Chicago Board | 17 | | Options Exchange. The tax is imposed at a rate of $0.002 per | 18 | | every $1 of value traded. The tax shall be paid by the trading | 19 | | facility. All transactions executed via open outcry that are | 20 | | physically filled on the exchange floor are exempt from the | 21 | | tax. | 22 | | (b) The tax shall be collected by the exchange or board of |
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| 1 | | trade and shall be remitted to the Department of Revenue | 2 | | biannually in the form and manner required by the Department. | 3 | | The exchange or board of trade may retain 5% of the amount | 4 | | collected, which is allowed to
reimburse the exchange or board | 5 | | of trade for the expenses incurred in keeping records,
| 6 | | preparing and filing returns, remitting the tax, and supplying | 7 | | data to
the Department on request. | 8 | | (c) Subject to the provisions of subsection (b), the tax | 9 | | imposed under this Act, and all civil penalties that may
be | 10 | | assessed as an incident thereof, shall be administered, | 11 | | collected, and
enforced by the Department of Revenue, and | 12 | | commodity brokers shall register with the Department in the | 13 | | same manner as required under the Retailers' Occupation Tax | 14 | | Act insofar as may be applicable.
The Department of Revenue | 15 | | has full power to administer and enforce
this Act, to collect | 16 | | all taxes and penalties due under this Act, to dispose
of taxes | 17 | | and penalties so collected as provided in this Act, and
to | 18 | | determine all rights to credit memoranda arising on account of | 19 | | the
erroneous payment of a tax or penalty under this Act. The | 20 | | Department of Revenue shall pay over to the State Treasurer | 21 | | all moneys remitted to the Department under this Act for | 22 | | deposit into the General Revenue Fund. | 23 | | Section 10. Recordkeeping. Each exchange or board of trade | 24 | | that is subject to the tax under this Act shall keep records | 25 | | and books of all transactions giving rise to a tax under this |
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| 1 | | Act. Those books and records shall be kept in the English | 2 | | language and shall, at all times during business hours of the | 3 | | day, be subject to inspection by the Department or its duly | 4 | | authorized agents and employees. | 5 | | Section 15. Retailers' Occupation Tax Act and Uniform | 6 | | Penalty and Interest Act adopted. The provisions of Sections | 7 | | 4, 5, 5f, 5i, 6, 6a, 6b, 6c, 8, 9, 10, and 12 of the Retailers' | 8 | | Occupation Tax Act which are not inconsistent with this Act, | 9 | | and Section 3-7 of the Uniform Penalty and Interest Act, shall | 10 | | apply as far as practicable to the subject matter of this Act | 11 | | to the same extent as if those provisions were included in this | 12 | | Act. | 13 | | Section 20. Rules. The Department shall adopt | 14 | | administrative rules to implement and administer this Act. | 15 | | Initial rules may be adopted as emergency rules. | 16 | | Section 25. Interstate commerce exemption. No tax is | 17 | | imposed under this Act upon the privilege of engaging in a | 18 | | business in interstate commerce or otherwise when the business | 19 | | may not, under the Constitution and statutes of the United | 20 | | States, be made the subject of taxation by this State. | 21 | | Section 99. Effective date. This Act takes effect upon | 22 | | becoming law. |
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