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Illinois House Bill HB3429

Illinois 2023-2024 Regular Session

Illinois House Bill HB3429 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3429 Introduced , by Rep. Michael T. Marron SYNOPSIS AS INTRODUCED: 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 Amends the Business Corporation Act of 1983. Provides for the reduction of franchise tax liabilities for domestic and foreign corporations beginning January 1, 2024. Repeals provisions concerning franchise taxes payable by domestic and foreign corporations on December 31, 2026. Effective immediately. LRB103 27397 SPS 53769 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3429 Introduced , by Rep. Michael T. Marron SYNOPSIS AS INTRODUCED: 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 Amends the Business Corporation Act of 1983. Provides for the reduction of franchise tax liabilities for domestic and foreign corporations beginning January 1, 2024. Repeals provisions concerning franchise taxes payable by domestic and foreign corporations on December 31, 2026. Effective immediately. LRB103 27397 SPS 53769 b LRB103 27397 SPS 53769 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3429 Introduced , by Rep. Michael T. Marron SYNOPSIS AS INTRODUCED:
33 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65
44 805 ILCS 5/15.35 from Ch. 32, par. 15.35
55 805 ILCS 5/15.65 from Ch. 32, par. 15.65
66 Amends the Business Corporation Act of 1983. Provides for the reduction of franchise tax liabilities for domestic and foreign corporations beginning January 1, 2024. Repeals provisions concerning franchise taxes payable by domestic and foreign corporations on December 31, 2026. Effective immediately.
77 LRB103 27397 SPS 53769 b LRB103 27397 SPS 53769 b
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99 A BILL FOR
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1212 1 AN ACT concerning business.
1313 2 Be it enacted by the People of the State of Illinois,
1414 3 represented in the General Assembly:
1515 4 Section 5. The Business Corporation Act of 1983 is amended
1616 5 by changing Sections 15.35 and 15.65 as follows:
1717 6 (805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
1818 7 (Text of Section from P.A. 102-16)
1919 8 Sec. 15.35. Franchise taxes payable by domestic
2020 9 corporations. For the privilege of exercising its franchises
2121 10 in this State, each domestic corporation shall pay to the
2222 11 Secretary of State the following franchise taxes, computed on
2323 12 the basis, at the rates and for the periods prescribed in this
2424 13 Act:
2525 14 (a) An initial franchise tax at the time of filing its
2626 15 first report of issuance of shares.
2727 16 (b) An additional franchise tax at the time of filing
2828 17 (1) a report of the issuance of additional shares, or (2) a
2929 18 report of an increase in paid-in capital without the
3030 19 issuance of shares, or (3) an amendment to the articles of
3131 20 incorporation or a report of cumulative changes in paid-in
3232 21 capital, whenever any amendment or such report discloses
3333 22 an increase in its paid-in capital over the amount thereof
3434 23 last reported in any document, other than an annual
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3838 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3429 Introduced , by Rep. Michael T. Marron SYNOPSIS AS INTRODUCED:
3939 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65
4040 805 ILCS 5/15.35 from Ch. 32, par. 15.35
4141 805 ILCS 5/15.65 from Ch. 32, par. 15.65
4242 Amends the Business Corporation Act of 1983. Provides for the reduction of franchise tax liabilities for domestic and foreign corporations beginning January 1, 2024. Repeals provisions concerning franchise taxes payable by domestic and foreign corporations on December 31, 2026. Effective immediately.
4343 LRB103 27397 SPS 53769 b LRB103 27397 SPS 53769 b
4444 LRB103 27397 SPS 53769 b
4545 A BILL FOR
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5252 805 ILCS 5/15.65 from Ch. 32, par. 15.65
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7171 1 report, interim annual report or final transition annual
7272 2 report required by this Act to be filed in the office of
7373 3 the Secretary of State.
7474 4 (c) An additional franchise tax at the time of filing
7575 5 a report of paid-in capital following a statutory merger
7676 6 or consolidation, which discloses that the paid-in capital
7777 7 of the surviving or new corporation immediately after the
7878 8 merger or consolidation is greater than the sum of the
7979 9 paid-in capital of all of the merged or consolidated
8080 10 corporations as last reported by them in any documents,
8181 11 other than annual reports, required by this Act to be
8282 12 filed in the office of the Secretary of State; and in
8383 13 addition, the surviving or new corporation shall be liable
8484 14 for a further additional franchise tax on the paid-in
8585 15 capital of each of the merged or consolidated corporations
8686 16 as last reported by them in any document, other than an
8787 17 annual report, required by this Act to be filed with the
8888 18 Secretary of State from their taxable year end to the next
8989 19 succeeding anniversary month or, in the case of a
9090 20 corporation which has established an extended filing
9191 21 month, the extended filing month of the surviving or new
9292 22 corporation; however if the taxable year ends within the
9393 23 2-month period immediately preceding the anniversary month
9494 24 or, in the case of a corporation which has established an
9595 25 extended filing month, the extended filing month of the
9696 26 surviving or new corporation the tax will be computed to
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107107 1 the anniversary month or, in the case of a corporation
108108 2 which has established an extended filing month, the
109109 3 extended filing month of the surviving or new corporation
110110 4 in the next succeeding calendar year.
111111 5 (d) An annual franchise tax payable each year with the
112112 6 annual report which the corporation is required by this
113113 7 Act to file.
114114 8 (e) On or after January 1, 2020 and prior to January 1,
115115 9 2021, the first $30 in liability is exempt from the tax imposed
116116 10 under this Section. On or after January 1, 2021 and prior to
117117 11 January 1, 2024, the first $1,000 in liability is exempt from
118118 12 the tax imposed under this Section. On or after January 1, 2024
119119 13 and prior to January 1, 2025, the first $10,000 in liability is
120120 14 exempt from the tax imposed under this Section. On or after
121121 15 January 1, 2025 and prior to January 1, 2026, the first
122122 16 $100,000 in liability is exempt from the tax imposed under
123123 17 this Section. The provisions of this Section shall not require
124124 18 the payment of any franchise tax that would otherwise have
125125 19 been due and payable on or after January 1, 2026. There shall
126126 20 be no refunds or proration of franchise tax for any taxes due
127127 21 and payable on or after January 1, 2026 on the basis that a
128128 22 portion of the corporation's taxable year extends beyond
129129 23 January 1, 2026. Public Act 101-9 shall not affect any right
130130 24 accrued or established, or any liability or penalty incurred
131131 25 prior to January 1, 2026.
132132 26 (f) This Section is repealed on December 31, 2026.
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143143 1 (Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21.)
144144 2 (Text of Section from P.A. 102-282)
145145 3 Sec. 15.35. Franchise taxes payable by domestic
146146 4 corporations. For the privilege of exercising its franchises
147147 5 in this State, each domestic corporation shall pay to the
148148 6 Secretary of State the following franchise taxes, computed on
149149 7 the basis, at the rates and for the periods prescribed in this
150150 8 Act:
151151 9 (a) An initial franchise tax at the time of filing its
152152 10 first report of issuance of shares.
153153 11 (b) An additional franchise tax at the time of filing
154154 12 (1) a report of the issuance of additional shares, or (2) a
155155 13 report of an increase in paid-in capital without the
156156 14 issuance of shares, or (3) an amendment to the articles of
157157 15 incorporation or a report of cumulative changes in paid-in
158158 16 capital, whenever any amendment or such report discloses
159159 17 an increase in its paid-in capital over the amount thereof
160160 18 last reported in any document, other than an annual
161161 19 report, interim annual report or final transition annual
162162 20 report required by this Act to be filed in the office of
163163 21 the Secretary of State.
164164 22 (c) An additional franchise tax at the time of filing
165165 23 a report of paid-in capital following a statutory merger
166166 24 or consolidation, which discloses that the paid-in capital
167167 25 of the surviving or new corporation immediately after the
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178178 1 merger or consolidation is greater than the sum of the
179179 2 paid-in capital of all of the merged or consolidated
180180 3 corporations as last reported by them in any documents,
181181 4 other than annual reports, required by this Act to be
182182 5 filed in the office of the Secretary of State; and in
183183 6 addition, the surviving or new corporation shall be liable
184184 7 for a further additional franchise tax on the paid-in
185185 8 capital of each of the merged or consolidated corporations
186186 9 as last reported by them in any document, other than an
187187 10 annual report, required by this Act to be filed with the
188188 11 Secretary of State from their taxable year end to the next
189189 12 succeeding anniversary month or, in the case of a
190190 13 corporation which has established an extended filing
191191 14 month, the extended filing month of the surviving or new
192192 15 corporation; however if the taxable year ends within the
193193 16 2-month period immediately preceding the anniversary month
194194 17 or, in the case of a corporation which has established an
195195 18 extended filing month, the extended filing month of the
196196 19 surviving or new corporation the tax will be computed to
197197 20 the anniversary month or, in the case of a corporation
198198 21 which has established an extended filing month, the
199199 22 extended filing month of the surviving or new corporation
200200 23 in the next succeeding calendar year.
201201 24 (d) An annual franchise tax payable each year with the
202202 25 annual report which the corporation is required by this
203203 26 Act to file.
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214214 1 (e) On or after January 1, 2020 and prior to January 1,
215215 2 2021, the first $30 in liability is exempt from the tax imposed
216216 3 under this Section. On or after January 1, 2021 and prior to
217217 4 January 1, 2024 2022, the first $1,000 in liability is exempt
218218 5 from the tax imposed under this Section. On or after January 1,
219219 6 2024 2022 and prior to January 1, 2025 2023, the first $10,000
220220 7 in liability is exempt from the tax imposed under this
221221 8 Section. On or after January 1, 2025 2023 and prior to January
222222 9 1, 2026 2024, the first $100,000 in liability is exempt from
223223 10 the tax imposed under this Section. The provisions of this
224224 11 Section shall not require the payment of any franchise tax
225225 12 that would otherwise have been due and payable on or after
226226 13 January 1, 2026 2024. There shall be no refunds or proration of
227227 14 franchise tax for any taxes due and payable on or after January
228228 15 1, 2026 2024 on the basis that a portion of the corporation's
229229 16 taxable year extends beyond January 1, 2026 2024. Public Act
230230 17 101-9 shall not affect any right accrued or established, or
231231 18 any liability or penalty incurred prior to January 1, 2026
232232 19 2024.
233233 20 (f) This Section is repealed on December 31, 2026 2024.
234234 21 (Source: P.A. 101-9, eff. 6-5-19; 102-282, eff. 1-1-22.)
235235 22 (Text of Section from P.A. 102-558)
236236 23 Sec. 15.35. Franchise taxes payable by domestic
237237 24 corporations. For the privilege of exercising its franchises
238238 25 in this State, each domestic corporation shall pay to the
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249249 1 Secretary of State the following franchise taxes, computed on
250250 2 the basis, at the rates and for the periods prescribed in this
251251 3 Act:
252252 4 (a) An initial franchise tax at the time of filing its
253253 5 first report of issuance of shares.
254254 6 (b) An additional franchise tax at the time of filing
255255 7 (1) a report of the issuance of additional shares, or (2) a
256256 8 report of an increase in paid-in capital without the
257257 9 issuance of shares, or (3) an amendment to the articles of
258258 10 incorporation or a report of cumulative changes in paid-in
259259 11 capital, whenever any amendment or such report discloses
260260 12 an increase in its paid-in capital over the amount thereof
261261 13 last reported in any document, other than an annual
262262 14 report, interim annual report or final transition annual
263263 15 report required by this Act to be filed in the office of
264264 16 the Secretary of State.
265265 17 (c) An additional franchise tax at the time of filing
266266 18 a report of paid-in capital following a statutory merger
267267 19 or consolidation, which discloses that the paid-in capital
268268 20 of the surviving or new corporation immediately after the
269269 21 merger or consolidation is greater than the sum of the
270270 22 paid-in capital of all of the merged or consolidated
271271 23 corporations as last reported by them in any documents,
272272 24 other than annual reports, required by this Act to be
273273 25 filed in the office of the Secretary of State; and in
274274 26 addition, the surviving or new corporation shall be liable
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285285 1 for a further additional franchise tax on the paid-in
286286 2 capital of each of the merged or consolidated corporations
287287 3 as last reported by them in any document, other than an
288288 4 annual report, required by this Act to be filed with the
289289 5 Secretary of State from their taxable year end to the next
290290 6 succeeding anniversary month or, in the case of a
291291 7 corporation which has established an extended filing
292292 8 month, the extended filing month of the surviving or new
293293 9 corporation; however if the taxable year ends within the
294294 10 2-month period immediately preceding the anniversary month
295295 11 or, in the case of a corporation which has established an
296296 12 extended filing month, the extended filing month of the
297297 13 surviving or new corporation the tax will be computed to
298298 14 the anniversary month or, in the case of a corporation
299299 15 which has established an extended filing month, the
300300 16 extended filing month of the surviving or new corporation
301301 17 in the next succeeding calendar year.
302302 18 (d) An annual franchise tax payable each year with the
303303 19 annual report which the corporation is required by this
304304 20 Act to file.
305305 21 On or after January 1, 2020 and prior to January 1, 2021,
306306 22 the first $30 in liability is exempt from the tax imposed under
307307 23 this Section. On or after January 1, 2021 and prior to January
308308 24 1, 2024 2022, the first $1,000 in liability is exempt from the
309309 25 tax imposed under this Section. On or after January 1, 2024
310310 26 2022 and prior to January 1, 2025 2023, the first $10,000 in
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321321 1 liability is exempt from the tax imposed under this Section.
322322 2 On or after January 1, 2025 2023 and prior to January 1, 2026
323323 3 2024, the first $100,000 in liability is exempt from the tax
324324 4 imposed under this Section. The provisions of this Section
325325 5 shall not require the payment of any franchise tax that would
326326 6 otherwise have been due and payable on or after January 1, 2026
327327 7 2024. There shall be no refunds or proration of franchise tax
328328 8 for any taxes due and payable on or after January 1, 2024 on
329329 9 the basis that a portion of the corporation's taxable year
330330 10 extends beyond January 1, 2026 2024. Public Act 101-9 shall
331331 11 not affect any right accrued or established, or any liability
332332 12 or penalty incurred prior to January 1, 2026 2024.
333333 13 (f) This Section is repealed on December 31, 2026 2025.
334334 14 (Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.)
335335 15 (805 ILCS 5/15.65) (from Ch. 32, par. 15.65)
336336 16 Sec. 15.65. Franchise taxes payable by foreign
337337 17 corporations. For the privilege of exercising its authority to
338338 18 transact such business in this State as set out in its
339339 19 application therefor or any amendment thereto, each foreign
340340 20 corporation shall pay to the Secretary of State the following
341341 21 franchise taxes, computed on the basis, at the rates and for
342342 22 the periods prescribed in this Act:
343343 23 (a) An initial franchise tax at the time of filing its
344344 24 application for authority to transact business in this
345345 25 State.
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356356 1 (b) An additional franchise tax at the time of filing
357357 2 (1) a report of the issuance of additional shares, or (2) a
358358 3 report of an increase in paid-in capital without the
359359 4 issuance of shares, or (3) a report of cumulative changes
360360 5 in paid-in capital or a report of an exchange or
361361 6 reclassification of shares, whenever any such report
362362 7 discloses an increase in its paid-in capital over the
363363 8 amount thereof last reported in any document, other than
364364 9 an annual report, interim annual report or final
365365 10 transition annual report, required by this Act to be filed
366366 11 in the office of the Secretary of State.
367367 12 (c) Whenever the corporation shall be a party to a
368368 13 statutory merger and shall be the surviving corporation,
369369 14 an additional franchise tax at the time of filing its
370370 15 report following merger, if such report discloses that the
371371 16 amount represented in this State of its paid-in capital
372372 17 immediately after the merger is greater than the aggregate
373373 18 of the amounts represented in this State of the paid-in
374374 19 capital of such of the merged corporations as were
375375 20 authorized to transact business in this State at the time
376376 21 of the merger, as last reported by them in any documents,
377377 22 other than annual reports, required by this Act to be
378378 23 filed in the office of the Secretary of State; and in
379379 24 addition, the surviving corporation shall be liable for a
380380 25 further additional franchise tax on the paid-in capital of
381381 26 each of the merged corporations as last reported by them
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392392 1 in any document, other than an annual report, required by
393393 2 this Act to be filed with the Secretary of State, from
394394 3 their taxable year end to the next succeeding anniversary
395395 4 month or, in the case of a corporation which has
396396 5 established an extended filing month, the extended filing
397397 6 month of the surviving corporation; however if the taxable
398398 7 year ends within the 2-month period immediately preceding
399399 8 the anniversary month or the extended filing month of the
400400 9 surviving corporation, the tax will be computed to the
401401 10 anniversary or, extended filing month of the surviving
402402 11 corporation in the next succeeding calendar year.
403403 12 (d) An annual franchise tax payable each year with any
404404 13 annual report which the corporation is required by this
405405 14 Act to file.
406406 15 On or after January 1, 2020 and prior to January 1, 2021,
407407 16 the first $30 in liability is exempt from the tax imposed under
408408 17 this Section. On or after January 1, 2021 and prior to January
409409 18 1, 2024, the first $1,000 in liability is exempt from the tax
410410 19 imposed under this Section. On or after January 1, 2024 and
411411 20 prior to January 1, 2025, the first $10,000 in liability is
412412 21 exempt from the tax imposed under this Section. On or after
413413 22 January 1, 2025 and prior to January 1, 2026, the first
414414 23 $100,000 in liability is exempt from the tax imposed under
415415 24 this Section. The provisions of this Section shall not require
416416 25 the payment of any franchise tax that would otherwise have
417417 26 been due and payable on or after January 1, 2026. There shall
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428428 1 be no refunds or proration of franchise tax for any taxes due
429429 2 and payable on or after January 1, 2026 on the basis that a
430430 3 portion of the corporation's taxable year extends beyond
431431 4 January 1, 2026. Public Act 101-9 shall not affect any right
432432 5 accrued or established, or any liability or penalty incurred
433433 6 prior to January 1, 2026.
434434 7 (f) This Section is repealed on December 31, 2026.
435435 8 (Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21;
436436 9 102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)
437437 10 Section 99. Effective date. This Act takes effect upon
438438 11 becoming law.
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