Full Text of SB0127 102nd General Assembly
SB0127 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB0127 Introduced 2/3/2021, by Sen. Emil Jones, III SYNOPSIS AS INTRODUCED: | | 805 ILCS 5/15.35 | from Ch. 32, par. 15.35 |
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Amends the Business Corporation Act of 1983. Makes a technical change in a
Section concerning franchise taxes payable by domestic corporations.
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| | A BILL FOR |
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| | | SB0127 | | LRB102 13986 JLS 19338 b |
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| 1 | | AN ACT concerning business.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Business Corporation Act of 1983 is amended | 5 | | by changing Section 15.35 as follows:
| 6 | | (805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
| 7 | | (Section scheduled to be repealed on December 31, 2025)
| 8 | | Sec. 15.35. Franchise taxes payable by domestic | 9 | | corporations. For the
the privilege of exercising its | 10 | | franchises in this State, each
domestic corporation shall pay | 11 | | to the Secretary of State the following
franchise taxes, | 12 | | computed on the basis, at the rates and for the periods
| 13 | | prescribed in this Act: | 14 | | (a) An initial franchise tax at the time of filing its | 15 | | first report of
issuance of shares.
| 16 | | (b) An additional franchise tax at the time of filing | 17 | | (1) a report of
the issuance of additional shares, or (2) a | 18 | | report of an increase in paid-in
capital without the | 19 | | issuance of shares, or (3) an amendment to the articles
of | 20 | | incorporation or a report of cumulative changes in paid-in | 21 | | capital,
whenever any amendment or such report discloses | 22 | | an increase in its paid-in
capital over the amount thereof | 23 | | last reported in any document, other than
an annual |
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| 1 | | report, interim annual report or final transition annual | 2 | | report
required by this Act to be filed in the office of | 3 | | the Secretary of State.
| 4 | | (c) An additional franchise tax at the time of filing | 5 | | a report of paid-in
capital following a statutory merger | 6 | | or consolidation, which discloses that
the paid-in capital | 7 | | of the surviving or new corporation immediately after
the | 8 | | merger or consolidation is greater than the sum of the | 9 | | paid-in capital
of all of the merged or consolidated | 10 | | corporations as last reported
by them in any documents, | 11 | | other than annual reports, required by this Act
to be | 12 | | filed in the office of the Secretary of State; and in | 13 | | addition, the
surviving or new corporation shall be liable | 14 | | for a further additional franchise
tax on the paid-in | 15 | | capital of each of the merged or consolidated
corporations | 16 | | as last reported by them in any document, other than an | 17 | | annual
report, required by this Act to be filed with the | 18 | | Secretary of State from
their taxable year end to the next | 19 | | succeeding anniversary month or, in
the case of a | 20 | | corporation which has established an extended filing | 21 | | month,
the extended filing month of the surviving or new | 22 | | corporation; however if
the taxable year ends within the | 23 | | 2-month
2 month period immediately preceding the
| 24 | | anniversary month or, in the case of a corporation which | 25 | | has established an
extended filing month, the extended | 26 | | filing month of the surviving or new
corporation the tax |
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| 1 | | will be computed to the anniversary month or, in the
case | 2 | | of a corporation which has established an extended filing | 3 | | month, the
extended filing month of the surviving or new | 4 | | corporation in the next
succeeding calendar year.
| 5 | | (d) An annual franchise tax payable each year with the | 6 | | annual report
which the corporation is required by this | 7 | | Act to file.
| 8 | | (e) On or after January 1, 2020 and prior to January 1, | 9 | | 2021, the first $30 in liability is exempt from the tax imposed | 10 | | under this Section. On or after January 1, 2021 and prior to | 11 | | January 1, 2022, the first $1,000 in liability is exempt from | 12 | | the tax imposed under this Section. On or after January 1, 2022 | 13 | | and prior to January 1, 2023, the first $10,000 in liability is | 14 | | exempt from the tax imposed under this Section. On or after | 15 | | January 1, 2023 and prior to January 1, 2024, the first | 16 | | $100,000 in liability is exempt from the tax imposed under | 17 | | this Section. The provisions of this Section shall not require | 18 | | the payment of any franchise tax that would otherwise have | 19 | | been due and payable on or after January 1, 2024. There shall | 20 | | be no refunds or proration of franchise tax for any taxes due | 21 | | and payable on or after January 1, 2024 on the basis that a | 22 | | portion of the corporation's taxable year extends beyond | 23 | | January 1, 2024. Public Act 101-9
This amendatory Act of the | 24 | | 101st General Assembly shall not affect any right accrued or | 25 | | established, or any liability or penalty incurred prior to | 26 | | January 1, 2024. |
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| 1 | | (f) This Section is repealed on December 31, 2025. | 2 | | (Source: P.A. 101-9, eff. 6-5-19; revised 7-18-19.)
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