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Illinois House Bill HB5001

Illinois 2023-2024 Regular Session

Illinois House Bill HB5001 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5001 Introduced , by Rep. Steven Reick SYNOPSIS AS INTRODUCED: 805 ILCS 5/15.35 from Ch. 32, par. 15.35 Amends the Business Corporation Act of 1983. Provides that, on or after January 1, 2025 and prior to January 1, 2026, the first $10,000 in liability is exempt from the franchise tax payable by domestic corporations. On or after January 1, 2026 and prior to January 1, 2027, the first $100,000 in liability is exempt from the franchise tax payable by domestic corporations. Provides that, in the case of a domestic corporation, no payment is required for a franchise tax that would have been due and payable on or after January 1, 2027. Repeals the provision concerning franchise taxes payable by domestic corporations on January 1, 2028. Effective immediately. LRB103 37631 SPS 67758 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5001 Introduced , by Rep. Steven Reick SYNOPSIS AS INTRODUCED: 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.35 from Ch. 32, par. 15.35 Amends the Business Corporation Act of 1983. Provides that, on or after January 1, 2025 and prior to January 1, 2026, the first $10,000 in liability is exempt from the franchise tax payable by domestic corporations. On or after January 1, 2026 and prior to January 1, 2027, the first $100,000 in liability is exempt from the franchise tax payable by domestic corporations. Provides that, in the case of a domestic corporation, no payment is required for a franchise tax that would have been due and payable on or after January 1, 2027. Repeals the provision concerning franchise taxes payable by domestic corporations on January 1, 2028. Effective immediately. LRB103 37631 SPS 67758 b LRB103 37631 SPS 67758 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5001 Introduced , by Rep. Steven Reick SYNOPSIS AS INTRODUCED:
33 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.35 from Ch. 32, par. 15.35
44 805 ILCS 5/15.35 from Ch. 32, par. 15.35
55 Amends the Business Corporation Act of 1983. Provides that, on or after January 1, 2025 and prior to January 1, 2026, the first $10,000 in liability is exempt from the franchise tax payable by domestic corporations. On or after January 1, 2026 and prior to January 1, 2027, the first $100,000 in liability is exempt from the franchise tax payable by domestic corporations. Provides that, in the case of a domestic corporation, no payment is required for a franchise tax that would have been due and payable on or after January 1, 2027. Repeals the provision concerning franchise taxes payable by domestic corporations on January 1, 2028. Effective immediately.
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1111 1 AN ACT concerning business.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 5. The Business Corporation Act of 1983 is amended
1515 5 by changing Section 15.35 as follows:
1616 6 (805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
1717 7 (Text of Section from P.A. 102-16 and 103-8)
1818 8 Sec. 15.35. Franchise taxes payable by domestic
1919 9 corporations. For the privilege of exercising its franchises
2020 10 in this State, each domestic corporation shall pay to the
2121 11 Secretary of State the following franchise taxes, computed on
2222 12 the basis, at the rates and for the periods prescribed in this
2323 13 Act:
2424 14 (a) An initial franchise tax at the time of filing its
2525 15 first report of issuance of shares.
2626 16 (b) An additional franchise tax at the time of filing
2727 17 (1) a report of the issuance of additional shares, or (2) a
2828 18 report of an increase in paid-in capital without the
2929 19 issuance of shares, or (3) an amendment to the articles of
3030 20 incorporation or a report of cumulative changes in paid-in
3131 21 capital, whenever any amendment or such report discloses
3232 22 an increase in its paid-in capital over the amount thereof
3333 23 last reported in any document, other than an annual
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3737 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5001 Introduced , by Rep. Steven Reick SYNOPSIS AS INTRODUCED:
3838 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.35 from Ch. 32, par. 15.35
3939 805 ILCS 5/15.35 from Ch. 32, par. 15.35
4040 Amends the Business Corporation Act of 1983. Provides that, on or after January 1, 2025 and prior to January 1, 2026, the first $10,000 in liability is exempt from the franchise tax payable by domestic corporations. On or after January 1, 2026 and prior to January 1, 2027, the first $100,000 in liability is exempt from the franchise tax payable by domestic corporations. Provides that, in the case of a domestic corporation, no payment is required for a franchise tax that would have been due and payable on or after January 1, 2027. Repeals the provision concerning franchise taxes payable by domestic corporations on January 1, 2028. Effective immediately.
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6868 1 report, interim annual report or final transition annual
6969 2 report required by this Act to be filed in the office of
7070 3 the Secretary of State.
7171 4 (c) An additional franchise tax at the time of filing
7272 5 a report of paid-in capital following a statutory merger
7373 6 or consolidation, which discloses that the paid-in capital
7474 7 of the surviving or new corporation immediately after the
7575 8 merger or consolidation is greater than the sum of the
7676 9 paid-in capital of all of the merged or consolidated
7777 10 corporations as last reported by them in any documents,
7878 11 other than annual reports, required by this Act to be
7979 12 filed in the office of the Secretary of State; and in
8080 13 addition, the surviving or new corporation shall be liable
8181 14 for a further additional franchise tax on the paid-in
8282 15 capital of each of the merged or consolidated corporations
8383 16 as last reported by them in any document, other than an
8484 17 annual report, required by this Act to be filed with the
8585 18 Secretary of State from their taxable year end to the next
8686 19 succeeding anniversary month or, in the case of a
8787 20 corporation which has established an extended filing
8888 21 month, the extended filing month of the surviving or new
8989 22 corporation; however if the taxable year ends within the
9090 23 2-month period immediately preceding the anniversary month
9191 24 or, in the case of a corporation which has established an
9292 25 extended filing month, the extended filing month of the
9393 26 surviving or new corporation the tax will be computed to
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104104 1 the anniversary month or, in the case of a corporation
105105 2 which has established an extended filing month, the
106106 3 extended filing month of the surviving or new corporation
107107 4 in the next succeeding calendar year.
108108 5 (d) An annual franchise tax payable each year with the
109109 6 annual report which the corporation is required by this
110110 7 Act to file.
111111 8 On or after January 1, 2020 and prior to January 1, 2021,
112112 9 the first $30 in liability is exempt from the tax imposed under
113113 10 this Section. On or after January 1, 2021, and prior to January
114114 11 1, 2024, the first $1,000 in liability is exempt from the tax
115115 12 imposed under this Section. On or after January 1, 2024 and
116116 13 prior to January 1, 2025, the first $5,000 in liability is
117117 14 exempt from the tax imposed under this Section. On or after
118118 15 January 1, 2025 and prior to January 1, 2026, the first $10,000
119119 16 in liability is exempt from the tax imposed under this
120120 17 Section. On or after January 1, 2026 and prior to January 1,
121121 18 2027, the first $100,000 in liability is exempt from the tax
122122 19 imposed under this Section. The provisions of this Section
123123 20 shall not require the payment of any franchise tax that would
124124 21 otherwise have been due and payable on or after January 1,
125125 22 2027. There shall be no refunds or proration of franchise tax
126126 23 for any taxes due and payable on or after January 1, 2027 on
127127 24 the basis that a portion of the corporation's taxable year
128128 25 extends beyond January 1, 2027.
129129 26 This Section is repealed on January 1, 2028.
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140140 1 (Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
141141 2 (Text of Section from P.A. 102-282, 102-558, and 103-8)
142142 3 Sec. 15.35. Franchise taxes payable by domestic
143143 4 corporations. For the privilege of exercising its franchises
144144 5 in this State, each domestic corporation shall pay to the
145145 6 Secretary of State the following franchise taxes, computed on
146146 7 the basis, at the rates and for the periods prescribed in this
147147 8 Act:
148148 9 (a) An initial franchise tax at the time of filing its
149149 10 first report of issuance of shares.
150150 11 (b) An additional franchise tax at the time of filing
151151 12 (1) a report of the issuance of additional shares, or (2) a
152152 13 report of an increase in paid-in capital without the
153153 14 issuance of shares, or (3) an amendment to the articles of
154154 15 incorporation or a report of cumulative changes in paid-in
155155 16 capital, whenever any amendment or such report discloses
156156 17 an increase in its paid-in capital over the amount thereof
157157 18 last reported in any document, other than an annual
158158 19 report, interim annual report or final transition annual
159159 20 report required by this Act to be filed in the office of
160160 21 the Secretary of State.
161161 22 (c) An additional franchise tax at the time of filing
162162 23 a report of paid-in capital following a statutory merger
163163 24 or consolidation, which discloses that the paid-in capital
164164 25 of the surviving or new corporation immediately after the
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175175 1 merger or consolidation is greater than the sum of the
176176 2 paid-in capital of all of the merged or consolidated
177177 3 corporations as last reported by them in any documents,
178178 4 other than annual reports, required by this Act to be
179179 5 filed in the office of the Secretary of State; and in
180180 6 addition, the surviving or new corporation shall be liable
181181 7 for a further additional franchise tax on the paid-in
182182 8 capital of each of the merged or consolidated corporations
183183 9 as last reported by them in any document, other than an
184184 10 annual report, required by this Act to be filed with the
185185 11 Secretary of State from their taxable year end to the next
186186 12 succeeding anniversary month or, in the case of a
187187 13 corporation which has established an extended filing
188188 14 month, the extended filing month of the surviving or new
189189 15 corporation; however if the taxable year ends within the
190190 16 2-month period immediately preceding the anniversary month
191191 17 or, in the case of a corporation which has established an
192192 18 extended filing month, the extended filing month of the
193193 19 surviving or new corporation the tax will be computed to
194194 20 the anniversary month or, in the case of a corporation
195195 21 which has established an extended filing month, the
196196 22 extended filing month of the surviving or new corporation
197197 23 in the next succeeding calendar year.
198198 24 (d) An annual franchise tax payable each year with the
199199 25 annual report which the corporation is required by this
200200 26 Act to file.
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211211 1 On or after January 1, 2020 and prior to January 1, 2021,
212212 2 the first $30 in liability is exempt from the tax imposed under
213213 3 this Section. On or after January 1, 2021 and prior to January
214214 4 1, 2024, the first $1,000 in liability is exempt from the tax
215215 5 imposed under this Section. On or after January 1, 2024 and
216216 6 prior to January 1, 2025, the first $5,000 in liability is
217217 7 exempt from the tax imposed under this Section. On or after
218218 8 January 1, 2025 and prior to January 1, 2026, the first $10,000
219219 9 in liability is exempt from the tax imposed under this
220220 10 Section. On or after January 1, 2026 and prior to January 1,
221221 11 2027, the first $100,000 in liability is exempt from the tax
222222 12 imposed under this Section. The provisions of this Section
223223 13 shall not require the payment of any franchise tax that would
224224 14 otherwise have been due and payable on or after January 1,
225225 15 2027. There shall be no refunds or proration of franchise tax
226226 16 for any taxes due and payable on or after January 1, 2027 on
227227 17 the basis that a portion of the corporation's taxable year
228228 18 extends beyond January 1, 2027.
229229 19 This Section is repealed on January 1, 2028.
230230 20 (Source: P.A. 102-282, eff. 1-1-22; 102-558, eff. 8-20-21;
231231 21 103-8, eff. 6-7-23.)
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