Illinois 2023-2024 Regular Session

Illinois House Bill HB1023 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1023 Introduced , by Rep. Mary E. Flowers SYNOPSIS AS INTRODUCED: New Act5 ILCS 100/5-45.35 new Creates the Financial Transaction Tax Act. Beginning January 1, 2024, imposes a tax on the privilege of engaging in a financial transaction 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 $1 per transaction for all transactions for which the underlying asset is an agricultural product, a financial instruments contract, or an options contract. Provides that transactions executed via open outcry that are physically filled on the exchange floor are exempt from the tax. Provides that the term "financial transaction" means a transaction involving the purchase or sale of a stock contract, futures contract, swap contract, credit default swap contract, or options contract, but does not include a transaction involving securities held in a retirement account or a transaction involving a mutual fund. Effective January 1, 2024. LRB103 04910 HLH 49920 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1023 Introduced , by Rep. Mary E. Flowers SYNOPSIS AS INTRODUCED: New Act5 ILCS 100/5-45.35 new New Act 5 ILCS 100/5-45.35 new Creates the Financial Transaction Tax Act. Beginning January 1, 2024, imposes a tax on the privilege of engaging in a financial transaction 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 $1 per transaction for all transactions for which the underlying asset is an agricultural product, a financial instruments contract, or an options contract. Provides that transactions executed via open outcry that are physically filled on the exchange floor are exempt from the tax. Provides that the term "financial transaction" means a transaction involving the purchase or sale of a stock contract, futures contract, swap contract, credit default swap contract, or options contract, but does not include a transaction involving securities held in a retirement account or a transaction involving a mutual fund. Effective January 1, 2024. LRB103 04910 HLH 49920 b LRB103 04910 HLH 49920 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1023 Introduced , by Rep. Mary E. Flowers SYNOPSIS AS INTRODUCED:
3	3	New Act5 ILCS 100/5-45.35 new New Act 5 ILCS 100/5-45.35 new
4	4	New Act
5	5	5 ILCS 100/5-45.35 new
6	6	Creates the Financial Transaction Tax Act. Beginning January 1, 2024, imposes a tax on the privilege of engaging in a financial transaction 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 $1 per transaction for all transactions for which the underlying asset is an agricultural product, a financial instruments contract, or an options contract. Provides that transactions executed via open outcry that are physically filled on the exchange floor are exempt from the tax. Provides that the term "financial transaction" means a transaction involving the purchase or sale of a stock contract, futures contract, swap contract, credit default swap contract, or options contract, but does not include a transaction involving securities held in a retirement account or a transaction involving a mutual fund. Effective January 1, 2024.
7	7	LRB103 04910 HLH 49920 b LRB103 04910 HLH 49920 b
8	8	LRB103 04910 HLH 49920 b
9	9	A BILL FOR
10	10	HB1023LRB103 04910 HLH 49920 b HB1023 LRB103 04910 HLH 49920 b
11	11	HB1023 LRB103 04910 HLH 49920 b
12	12	1 AN ACT concerning revenue.
13	13	2 Be it enacted by the People of the State of Illinois,
14	14	3 represented in the General Assembly:
15	15	4 Section 1. Short title. This Act may be cited as the
16	16	5 Financial Transaction Tax Act.
17	17	6 Section 2. Findings. The General Assembly finds that:
18	18	7 (1) a financial transaction tax is a fair and
19	19	8 sustainable source of revenue for the State; and
20	20	9 (2) a financial transaction tax will promote job
21	21	10 growth and economic stability and reduce the negative
22	22	11 effects created by high frequency trading.
23	23	12 Section 3. Definitions. As used in this Act:
24	24	13 "Department" means the Department of Revenue.
25	25	14 "Financial transaction" means a transaction involving the
26	26	15 purchase or sale of a stock contract, futures contract,
27	27	16 futures options contract, swap contract, credit default swap
28	28	17 contract, or options contract, but does not include a
29	29	18 transaction involving securities held in a retirement account
30	30	19 or a transaction involving a mutual fund.
31	31	20 Section 5. Tax imposed; definitions.
32	32	21 (a) Beginning January 1, 2024, a tax is imposed on the
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36	36	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1023 Introduced , by Rep. Mary E. Flowers SYNOPSIS AS INTRODUCED:
37	37	New Act5 ILCS 100/5-45.35 new New Act 5 ILCS 100/5-45.35 new
38	38	New Act
39	39	5 ILCS 100/5-45.35 new
40	40	Creates the Financial Transaction Tax Act. Beginning January 1, 2024, imposes a tax on the privilege of engaging in a financial transaction 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 $1 per transaction for all transactions for which the underlying asset is an agricultural product, a financial instruments contract, or an options contract. Provides that transactions executed via open outcry that are physically filled on the exchange floor are exempt from the tax. Provides that the term "financial transaction" means a transaction involving the purchase or sale of a stock contract, futures contract, swap contract, credit default swap contract, or options contract, but does not include a transaction involving securities held in a retirement account or a transaction involving a mutual fund. Effective January 1, 2024.
41	41	LRB103 04910 HLH 49920 b LRB103 04910 HLH 49920 b
42	42	LRB103 04910 HLH 49920 b
43	43	A BILL FOR
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49	49	New Act
50	50	5 ILCS 100/5-45.35 new
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69	69	1 privilege of engaging in a financial transaction on any of the
70	70	2 following exchanges or boards of trade: the Chicago Stock
71	71	3 Exchange; the Chicago Mercantile Exchange; the Chicago Board
72	72	4 of Trade; or the Chicago Board Options Exchange. The tax is
73	73	5 imposed at a rate of $1 for each transaction for which the
74	74	6 underlying asset is an agricultural product, a financial
75	75	7 instruments contract, or an options contract. The tax shall be
76	76	8 paid by the trading facility or, in any other case, by the
77	77	9 purchaser involved in the transaction. All transactions
78	78	10 executed via open outcry that are physically filled on the
79	79	11 exchange floor are exempt from the tax.
80	80	12 (b) The tax shall be collected by the exchange or board of
81	81	13 trade and shall be remitted to the Department of Revenue
82	82	14 biannually in the form and manner required by the Department.
83	83	15 The exchange or board of trade may retain 5% of the amount
84	84	16 collected, which is allowed to reimburse the exchange or board
85	85	17 of trade for the expenses incurred in keeping records,
86	86	18 preparing and filing returns, remitting the tax, and supplying
87	87	19 data to the Department on request.
88	88	20 (c) Subject to the provisions of subsection (b), the tax
89	89	21 imposed under this Act, and all civil penalties that may be
90	90	22 assessed as an incident thereof, shall be administered,
91	91	23 collected, and enforced by the Department of Revenue, and
92	92	24 commodity brokers shall register with the Department in the
93	93	25 same manner as required under the Retailers' Occupation Tax
94	94	26 Act insofar as may be applicable. The Department of Revenue
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105	105	1 has full power to administer and enforce this Act, to collect
106	106	2 all taxes and penalties due under this Act, to dispose of taxes
107	107	3 and penalties so collected as provided in this Act, and to
108	108	4 determine all rights to credit memoranda arising on account of
109	109	5 the erroneous payment of a tax or penalty under this Act. The
110	110	6 Department of Revenue shall pay over to the State Treasurer
111	111	7 all moneys remitted to the Department under this Act for
112	112	8 deposit into the General Revenue Fund.
113	113	9 Section 10. Recordkeeping. Each exchange or board of trade
114	114	10 that is subject to the tax under this Act shall keep records
115	115	11 and books of all transactions giving rise to a tax under this
116	116	12 Act. Those books and records shall be kept in the English
117	117	13 language and shall, at all times during business hours of the
118	118	14 day, be subject to inspection by the Department or its duly
119	119	15 authorized agents and employees.
120	120	16 Section 15. Retailers' Occupation Tax Act and Uniform
121	121	17 Penalty and Interest Act adopted. The provisions of Sections
122	122	18 4, 5, 5f, 5i, 6, 6a, 6b, 6c, 8, 9, 10, and 12 of the Retailers'
123	123	19 Occupation Tax Act which are not inconsistent with this Act,
124	124	20 and Section 3-7 of the Uniform Penalty and Interest Act, shall
125	125	21 apply as far as practicable to the subject matter of this Act
126	126	22 to the same extent as if those provisions were included in this
127	127	23 Act.
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138	138	1 Section 20. Rules. The Department shall adopt
139	139	2 administrative rules to implement and administer this Act.
140	140	3 Initial rules may be adopted as emergency rules.
141	141	4 Section 25. Interstate commerce exemption. No tax is
142	142	5 imposed under this Act upon the privilege of engaging in a
143	143	6 business in interstate commerce or otherwise when the business
144	144	7 may not, under the Constitution and statutes of the United
145	145	8 States, be made the subject of taxation by this State.
146	146	9 Section 900. The Illinois Administrative Procedure Act is
147	147	10 amended by adding Section 5-45.35 as follows:
148	148	11 (5 ILCS 100/5-45.35 new)
149	149	12 Sec. 5-45.35. Emergency rulemaking. To provide for the
150	150	13 expeditious and timely implementation of the Financial
151	151	14 Transaction Tax Act, emergency rules implementing the
152	152	15 Financial Transaction Tax Act may be adopted in accordance
153	153	16 with Section 5-45 by the Department of Revenue. The adoption
154	154	17 of emergency rules authorized by Section 5-45 and this Section
155	155	18 is deemed to be necessary for the public interest, safety, and
156	156	19 welfare.
157	157	20 This Section is repealed one year after the effective date
158	158	21 of this amendatory Act of the 103rd General Assembly.
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