Illinois General Assembly - Illinois Compiled Statutes

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805 ILCS 5/15.40

(805 ILCS 5/15.40) (from Ch. 32, par. 15.40)

Sec. 15.40.

Basis for computation of franchise taxes payable by
domestic corporations.

(a) The basis for the initial franchise tax payable by a
domestic corporation shall be the amount represented in this State,
determined in accordance with the provisions of this Section, of its
paid-in capital as disclosed by its first report of the issuance of shares.

(b) The basis for an additional franchise tax payable by a domestic
corporation, except in the case of a statutory merger or consolidation,
shall be the increased amount represented in this State, determined in
accordance with the provisions of this Section, of its paid-in
capital as disclosed by any report of issuance of additional shares, or of
an increase in paid-in capital without the issuance of shares, or of an
exchange or reclassification of shares, or of cumulative changes in
paid-in capital.

(c) In the case of a statutory merger or consolidation of domestic
corporations, the basis for an additional franchise tax payable by the
surviving or new corporation shall be the increased amount represented
in this State, determined in accordance with the provisions of this
Section of the paid-in capital of the surviving or new corporation
immediately after the merger or consolidation over the aggregate of the
amounts represented in this State of the paid-in capital of the merged or
consolidated corporations disclosed by the latest reports filed by those
corporations, respectively, with the Secretary of State as required by this
Act; provided, however, the basis for a further additional franchise tax
payable by the surviving or new corporation shall be determined in
accordance with the provisions of this Section, on the paid-in capital of
each of the merged or consolidated corporations as last reported by it in
any document, other than an annual report, required by this Act to be filed
with the Secretary of State, from its taxable year end to the next
succeeding anniversary month or, in the case of a corporation that has
established an extended filing month, the next succeeding extended filing
month of the surviving  or new corporation; however if the taxable year
ends within the 2 month period immediately preceding the anniversary month
or, in the case of a corporation that has established an extended filing
month, the next succeeding extended filing month of the surviving or new
corporation the tax shall be computed to the anniversary month or, in the
case of a corporation that has established an extended filing month, the
next succeeding extended filing month of the surviving or new corporation
in the next succeeding calendar year.

(d) The basis for the annual franchise tax payable by a domestic
corporation
shall be the amount represented in this State, determined in accordance
with the provisions of this Section, of its paid-in capital on the last day
of the third month preceding the anniversary month or, in the case of a
corporation that has established an extended filing month, on the last day
of the corporation's fiscal year preceding the extended filing month.

(e) For the purpose of determining the amount represented in this State
of the paid-in capital of a domestic corporation, the amount represented in
this State shall be that proportion of its paid-in capital that the sum of
(1) the value of its property located in this State and (2) the gross
amount of business transacted by it at or from places of business in this
State bears to the sum of (1) the value of all of its property, wherever
located, and (2) the gross amount of its business, wherever transacted,
except as follows:

(1) If the corporation elects in its annual report in

any year to pay its franchise tax upon its entire paid-in capital, all franchise taxes accruing against the corporation for that taxable year shall be computed accordingly until the corporation elects otherwise in an annual report for a subsequent year.

(2) If the corporation fails to file its annual

report or final transition annual report in any year within the time prescribed by this Act, the proportion of its paid-in capital represented in this State shall be deemed to be its entire paid-in capital unless its annual report is thereafter filed and its franchise taxes are thereafter adjusted by the Secretary of State in accordance with the provisions of this Act, in which case the proportion shall likewise be adjusted to the same proportion that would have prevailed if the corporation had filed its annual report within the time prescribed by this Act.

(3) In the case of a statutory merger or

consolidation that becomes effective either prior to January 1, 1991 or on or prior to the last day of the third month preceding the corporation's anniversary month in 1991, the amount of the paid-in capital represented in this State of the surviving or new corporation immediately after the merger or consolidation, until the filing of the next annual report of such corporation, shall be deemed to be that proportion of the paid-in capital of the surviving or new corporation that the aggregate amounts represented in this State of the sum of the paid-in capital of the merged or consolidated corporations, separately determined, bore to the total of the sum of the paid-in capital of all of the merged or consolidated corporations immediately prior to the merger or consolidation.

(f) For increases in paid-in capital that occur either prior to January
1, 1991
or on or prior to the last day of the third month preceding the
corporation's anniversary month in 1991, the proportion corporation on file
on the date represented in this State of the paid-in capital of a domestic
corporation shall be determined from information contained in the latest
annual report of the corporation on file on the date the particular
increase in paid-in capital is shown to have been made, or, if no annual
report was on file on the date of the increase, from information contained
in its articles of incorporation, or, in case of a merger or consolidation
that becomes effective either prior to January 1, 1991 or on or prior to
the last day of the third month preceding the corporation's anniversary
month in 1991, from information contained in the report of the surviving or
new corporation of the amount of its paid-in capital following the merger
or consolidation.  For increases in paid-in capital that occur after both
December 31, 1990 and the last day of such third month, the proportion
represented in this State of the paid-in capital of a domestic corporation
shall be determined from information contained in the latest annual report
of the corporation for the taxable period in which the particular increase
in paid-in capital is shown to have been made or, if no annual report was
on file on the date of the increase, from information contained in its
articles of incorporation.

(g) No basis under this Section may consist of any redeemable preference
 shares
sold to the United States Secretary of Transportation under Sections 505
and 506 of Public Law 94-210.

(Source: P.A. 91-464, eff. 1-1-00.)