Full Text of HB2568 101st General Assembly
HB2568 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB2568 Introduced , by Rep. Anne Stava-Murray SYNOPSIS AS INTRODUCED: |
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Creates the Corporate Buyback Tax Act. Imposes a tax on the buyback of shares of a publicly held corporation at the rate of 0.25% of the purchase price paid by a corporation for the purchase of its own securities. Applies to publicly held corporations having 100 or more employees. Effective immediately.
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| | A BILL FOR |
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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 1. Short title. This Act may be cited as the | 5 | | Corporate Buyback Tax Act. | 6 | | Section 5. Definitions. As used in this Act: | 7 | | "Corporation" means a publicly held corporation that has, | 8 | | at the time of the transaction, 100 or more employees. | 9 | | "Department" means the Department of Revenue. | 10 | | "Purchase" means the purchase by a corporation of its own | 11 | | corporate securities. | 12 | | Section 10. Tax imposed. | 13 | | (a) Beginning on July 1, 2020, a tax is imposed upon each | 14 | | corporation that makes a purchase of its own corporate | 15 | | securities in this State. The tax is imposed at the rate of | 16 | | 0.25% of the amount of the purchase. | 17 | | (b) A corporation subject to the tax under subsection (a) | 18 | | shall apply to the Department (upon a form prescribed and | 19 | | furnished by the Department) for a certificate of registration | 20 | | under this Act. | 21 | | (c) The Department shall have full power to administer and | 22 | | enforce this Act, to collect all taxes and penalties due under |
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| 1 | | this Act, to dispose of taxes and penalties so collected in the | 2 | | manner provided in this Act, and to determine all rights to | 3 | | credit memoranda, arising on account of the erroneous payment | 4 | | of tax or penalty hereunder. | 5 | | (d) The tax imposed under this Act shall be in addition to | 6 | | all other taxes imposed by the State of Illinois or by any | 7 | | municipal corporation or political subdivision of the State. | 8 | | Persons subject to the tax imposed by this Act may reimburse | 9 | | themselves for their tax liability under this Act by separately | 10 | | stating the amount of the tax as an additional charge to | 11 | | consumers. | 12 | | (e) The tax is not imposed with respect to any business in | 13 | | interstate
commerce, or otherwise to the extent to which such | 14 | | business may not, under
the Constitution and statutes of the | 15 | | United States, be made the subject of
taxation by this State. | 16 | | Section 15. Returns. On or before the 20th day of each | 17 | | calendar month, a corporation is subject to the tax under this | 18 | | Act during the preceding calendar month shall file a return | 19 | | with the Department, stating: | 20 | | (1) the name of the taxpayer; | 21 | | (2) the address of the taxpayer's principal place of | 22 | | business; | 23 | | (3) the amount of tax due; | 24 | | (4) the signature of the taxpayer; and | 25 | | (5) such other reasonable information as the
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| 1 | | Department may require. | 2 | | If a taxpayer fails to sign a return within 30 days after | 3 | | the proper notice and demand for signature by the Department, | 4 | | the return shall be considered valid and any amount shown to be | 5 | | due on the return shall be deemed assessed. | 6 | | The taxpayer shall remit the amount of the tax due to the | 7 | | Department at the time the taxpayer files its return. | 8 | | Section 20. Suspension or revocation of certificates of | 9 | | registration. The Department may, after notice and a hearing as | 10 | | provided in this Act, suspend or revoke the certificate of | 11 | | registration of any person who violates any of the provisions | 12 | | of this Act. Before suspension or revocation of a certificate | 13 | | of registration, the Department shall, within 90 days after | 14 | | noncompliance and at least 7 days prior to the date of the | 15 | | hearing, give the person so accused notice in writing of the | 16 | | charge against him or her, and on the date designated shall | 17 | | conduct a hearing upon this matter. The lapse of such 90-day | 18 | | period shall not preclude the Department from conducting | 19 | | suspension or revocation proceedings at a later date if | 20 | | necessary. Any hearing held under this Section shall be | 21 | | conducted by the Director of Revenue or by any officer or | 22 | | employee of the Department designated, in writing, by the | 23 | | Director of Revenue. | 24 | | Upon the hearing of any such proceeding, the Director of | 25 | | Revenue, or any officer or employee of the Department |
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| 1 | | designated, in writing, by the Director of Revenue, may | 2 | | administer oaths and the Department may procure by its subpoena | 3 | | the attendance of witnesses and, by its subpoena duces tecum, | 4 | | the production of relevant books and papers. Any circuit court, | 5 | | upon application either of the accused or of the Department, | 6 | | may, by order, require the attendance of witnesses and the | 7 | | production of relevant books and papers, before the Department | 8 | | in any hearing relating to the suspension or revocation of | 9 | | certificates of registration. Upon refusal or neglect to obey | 10 | | the order of the court, the court may compel obedience thereof | 11 | | by proceedings for contempt. | 12 | | Section 25. Review of Department decisions. Any person | 13 | | aggrieved by any decision of the Department under this Act may, | 14 | | within 20 days after notice of the decision, protest and | 15 | | request a hearing. The Department shall give notice to the | 16 | | person of the time and place fixed for the hearing, hold a | 17 | | hearing in conformity with this Act, and issue its final | 18 | | administrative decision in the matter to the person. In the | 19 | | absence of a protest within 20 days, the Department's decision | 20 | | shall become final without any further determination being made | 21 | | or notice given.
| 22 | | Section 30. Rules. The Department may adopt rules related | 23 | | to the enforcement of this Act.
| 24 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.
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