IL
Illinois House Bill HB5490

Illinois 2023-2024 Regular Session

Illinois House Bill HB5490 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5490 Introduced , by Rep. Kimberly Du Buclet SYNOPSIS AS INTRODUCED: 805 ILCS 5/15.35 from Ch. 32, par. 15.35805 ILCS 5/15.65 from Ch. 32, par. 15.65805 ILCS 5/15.97 from Ch. 32, par. 15.97 Amends the Business Corporation Act of 1983. Provides that, in the case of a domestic or foreign corporation, no payment is required for a franchise tax that would have been due and payable on or after January 1, 2025. Provides that all amounts remaining in the Corporate Franchise Tax Refund Fund shall be transferred to the General Revenue Fund no later than December 31, 2025. Repeals provisions concerning franchise taxes payable by domestic and foreign corporations on January 1, 2026. Effective immediately. LRB103 37755 SPS 67883 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5490 Introduced , by Rep. Kimberly Du Buclet SYNOPSIS AS INTRODUCED: 805 ILCS 5/15.35 from Ch. 32, par. 15.35805 ILCS 5/15.65 from Ch. 32, par. 15.65805 ILCS 5/15.97 from Ch. 32, par. 15.97 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 805 ILCS 5/15.97 from Ch. 32, par. 15.97 Amends the Business Corporation Act of 1983. Provides that, in the case of a domestic or foreign corporation, no payment is required for a franchise tax that would have been due and payable on or after January 1, 2025. Provides that all amounts remaining in the Corporate Franchise Tax Refund Fund shall be transferred to the General Revenue Fund no later than December 31, 2025. Repeals provisions concerning franchise taxes payable by domestic and foreign corporations on January 1, 2026. Effective immediately. LRB103 37755 SPS 67883 b LRB103 37755 SPS 67883 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5490 Introduced , by Rep. Kimberly Du Buclet SYNOPSIS AS INTRODUCED:
33 805 ILCS 5/15.35 from Ch. 32, par. 15.35805 ILCS 5/15.65 from Ch. 32, par. 15.65805 ILCS 5/15.97 from Ch. 32, par. 15.97 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 805 ILCS 5/15.97 from Ch. 32, par. 15.97
44 805 ILCS 5/15.35 from Ch. 32, par. 15.35
55 805 ILCS 5/15.65 from Ch. 32, par. 15.65
66 805 ILCS 5/15.97 from Ch. 32, par. 15.97
77 Amends the Business Corporation Act of 1983. Provides that, in the case of a domestic or foreign corporation, no payment is required for a franchise tax that would have been due and payable on or after January 1, 2025. Provides that all amounts remaining in the Corporate Franchise Tax Refund Fund shall be transferred to the General Revenue Fund no later than December 31, 2025. Repeals provisions concerning franchise taxes payable by domestic and foreign corporations on January 1, 2026. Effective immediately.
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1313 1 AN ACT concerning business.
1414 2 Be it enacted by the People of the State of Illinois,
1515 3 represented in the General Assembly:
1616 4 Section 5. The Business Corporation Act of 1983 is amended
1717 5 by changing Sections 15.35, 15.65, and 15.97 as follows:
1818 6 (805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
1919 7 (Text of Section from P.A. 102-16 and 103-8)
2020 8 Sec. 15.35. Franchise taxes payable by domestic
2121 9 corporations. For the privilege of exercising its franchises
2222 10 in this State, each domestic corporation shall pay to the
2323 11 Secretary of State the following franchise taxes, computed on
2424 12 the basis, at the rates and for the periods prescribed in this
2525 13 Act:
2626 14 (a) An initial franchise tax at the time of filing its
2727 15 first report of issuance of shares.
2828 16 (b) An additional franchise tax at the time of filing
2929 17 (1) a report of the issuance of additional shares, or (2) a
3030 18 report of an increase in paid-in capital without the
3131 19 issuance of shares, or (3) an amendment to the articles of
3232 20 incorporation or a report of cumulative changes in paid-in
3333 21 capital, whenever any amendment or such report discloses
3434 22 an increase in its paid-in capital over the amount thereof
3535 23 last reported in any document, other than an annual
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3939 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5490 Introduced , by Rep. Kimberly Du Buclet SYNOPSIS AS INTRODUCED:
4040 805 ILCS 5/15.35 from Ch. 32, par. 15.35805 ILCS 5/15.65 from Ch. 32, par. 15.65805 ILCS 5/15.97 from Ch. 32, par. 15.97 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 805 ILCS 5/15.97 from Ch. 32, par. 15.97
4141 805 ILCS 5/15.35 from Ch. 32, par. 15.35
4242 805 ILCS 5/15.65 from Ch. 32, par. 15.65
4343 805 ILCS 5/15.97 from Ch. 32, par. 15.97
4444 Amends the Business Corporation Act of 1983. Provides that, in the case of a domestic or foreign corporation, no payment is required for a franchise tax that would have been due and payable on or after January 1, 2025. Provides that all amounts remaining in the Corporate Franchise Tax Refund Fund shall be transferred to the General Revenue Fund no later than December 31, 2025. Repeals provisions concerning franchise taxes payable by domestic and foreign corporations on January 1, 2026. Effective immediately.
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7474 1 report, interim annual report or final transition annual
7575 2 report required by this Act to be filed in the office of
7676 3 the Secretary of State.
7777 4 (c) An additional franchise tax at the time of filing
7878 5 a report of paid-in capital following a statutory merger
7979 6 or consolidation, which discloses that the paid-in capital
8080 7 of the surviving or new corporation immediately after the
8181 8 merger or consolidation is greater than the sum of the
8282 9 paid-in capital of all of the merged or consolidated
8383 10 corporations as last reported by them in any documents,
8484 11 other than annual reports, required by this Act to be
8585 12 filed in the office of the Secretary of State; and in
8686 13 addition, the surviving or new corporation shall be liable
8787 14 for a further additional franchise tax on the paid-in
8888 15 capital of each of the merged or consolidated corporations
8989 16 as last reported by them in any document, other than an
9090 17 annual report, required by this Act to be filed with the
9191 18 Secretary of State from their taxable year end to the next
9292 19 succeeding anniversary month or, in the case of a
9393 20 corporation which has established an extended filing
9494 21 month, the extended filing month of the surviving or new
9595 22 corporation; however if the taxable year ends within the
9696 23 2-month period immediately preceding the anniversary month
9797 24 or, in the case of a corporation which has established an
9898 25 extended filing month, the extended filing month of the
9999 26 surviving or new corporation the tax will be computed to
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110110 1 the anniversary month or, in the case of a corporation
111111 2 which has established an extended filing month, the
112112 3 extended filing month of the surviving or new corporation
113113 4 in the next succeeding calendar year.
114114 5 (d) An annual franchise tax payable each year with the
115115 6 annual report which the corporation is required by this
116116 7 Act to file.
117117 8 On or after January 1, 2020 and prior to January 1, 2021,
118118 9 the first $30 in liability is exempt from the tax imposed under
119119 10 this Section. On or after January 1, 2021, and prior to January
120120 11 1, 2024, the first $1,000 in liability is exempt from the tax
121121 12 imposed under this Section. On or after January 1, 2024 and
122122 13 prior to January 1, 2025, the first $5,000 in liability is
123123 14 exempt from the tax imposed under this Section. The provisions
124124 15 of this Section shall not require the payment of any franchise
125125 16 tax that would otherwise have been due and payable on or after
126126 17 January 1, 2025. There shall be no refunds or proration of
127127 18 franchise tax for any taxes due and payable on or after January
128128 19 1, 2025 on the basis that a portion of the corporation's
129129 20 taxable year extends beyond January 1, 2025.
130130 21 This Section is repealed on January 1, 2026.
131131 22 (Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
132132 23 (Text of Section from P.A. 102-282, 102-558, and 103-8)
133133 24 Sec. 15.35. Franchise taxes payable by domestic
134134 25 corporations. For the privilege of exercising its franchises
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145145 1 in this State, each domestic corporation shall pay to the
146146 2 Secretary of State the following franchise taxes, computed on
147147 3 the basis, at the rates and for the periods prescribed in this
148148 4 Act:
149149 5 (a) An initial franchise tax at the time of filing its
150150 6 first report of issuance of shares.
151151 7 (b) An additional franchise tax at the time of filing
152152 8 (1) a report of the issuance of additional shares, or (2) a
153153 9 report of an increase in paid-in capital without the
154154 10 issuance of shares, or (3) an amendment to the articles of
155155 11 incorporation or a report of cumulative changes in paid-in
156156 12 capital, whenever any amendment or such report discloses
157157 13 an increase in its paid-in capital over the amount thereof
158158 14 last reported in any document, other than an annual
159159 15 report, interim annual report or final transition annual
160160 16 report required by this Act to be filed in the office of
161161 17 the Secretary of State.
162162 18 (c) An additional franchise tax at the time of filing
163163 19 a report of paid-in capital following a statutory merger
164164 20 or consolidation, which discloses that the paid-in capital
165165 21 of the surviving or new corporation immediately after the
166166 22 merger or consolidation is greater than the sum of the
167167 23 paid-in capital of all of the merged or consolidated
168168 24 corporations as last reported by them in any documents,
169169 25 other than annual reports, required by this Act to be
170170 26 filed in the office of the Secretary of State; and in
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181181 1 addition, the surviving or new corporation shall be liable
182182 2 for a further additional franchise tax on the paid-in
183183 3 capital of each of the merged or consolidated corporations
184184 4 as last reported by them in any document, other than an
185185 5 annual report, required by this Act to be filed with the
186186 6 Secretary of State from their taxable year end to the next
187187 7 succeeding anniversary month or, in the case of a
188188 8 corporation which has established an extended filing
189189 9 month, the extended filing month of the surviving or new
190190 10 corporation; however if the taxable year ends within the
191191 11 2-month period immediately preceding the anniversary month
192192 12 or, in the case of a corporation which has established an
193193 13 extended filing month, the extended filing month of the
194194 14 surviving or new corporation the tax will be computed to
195195 15 the anniversary month or, in the case of a corporation
196196 16 which has established an extended filing month, the
197197 17 extended filing month of the surviving or new corporation
198198 18 in the next succeeding calendar year.
199199 19 (d) An annual franchise tax payable each year with the
200200 20 annual report which the corporation is required by this
201201 21 Act to file.
202202 22 On or after January 1, 2020 and prior to January 1, 2021,
203203 23 the first $30 in liability is exempt from the tax imposed under
204204 24 this Section. On or after January 1, 2021 and prior to January
205205 25 1, 2024, the first $1,000 in liability is exempt from the tax
206206 26 imposed under this Section. On or after January 1, 2024 and
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217217 1 prior to January 1, 2025, the first $5,000 in liability is
218218 2 exempt from the tax imposed under this Section. The provisions
219219 3 of this Section shall not require the payment of any franchise
220220 4 tax that would otherwise have been due and payable on or after
221221 5 January 1, 2025. There shall be no refunds or proration of
222222 6 franchise tax for any taxes due and payable on or after January
223223 7 1, 2025 on the basis that a portion of the corporation's
224224 8 taxable year extends beyond January 1, 2025.
225225 9 This Section is repealed on January 1, 2026.
226226 10 (Source: P.A. 102-282, eff. 1-1-22; 102-558, eff. 8-20-21;
227227 11 103-8, eff. 6-7-23.)
228228 12 (805 ILCS 5/15.65) (from Ch. 32, par. 15.65)
229229 13 Sec. 15.65. Franchise taxes payable by foreign
230230 14 corporations. For the privilege of exercising its authority to
231231 15 transact such business in this State as set out in its
232232 16 application therefor or any amendment thereto, each foreign
233233 17 corporation shall pay to the Secretary of State the following
234234 18 franchise taxes, computed on the basis, at the rates and for
235235 19 the periods prescribed in this Act:
236236 20 (a) An initial franchise tax at the time of filing its
237237 21 application for authority to transact business in this
238238 22 State.
239239 23 (b) An additional franchise tax at the time of filing
240240 24 (1) a report of the issuance of additional shares, or (2) a
241241 25 report of an increase in paid-in capital without the
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252252 1 issuance of shares, or (3) a report of cumulative changes
253253 2 in paid-in capital or a report of an exchange or
254254 3 reclassification of shares, whenever any such report
255255 4 discloses an increase in its paid-in capital over the
256256 5 amount thereof last reported in any document, other than
257257 6 an annual report, interim annual report or final
258258 7 transition annual report, required by this Act to be filed
259259 8 in the office of the Secretary of State.
260260 9 (c) Whenever the corporation shall be a party to a
261261 10 statutory merger and shall be the surviving corporation,
262262 11 an additional franchise tax at the time of filing its
263263 12 report following merger, if such report discloses that the
264264 13 amount represented in this State of its paid-in capital
265265 14 immediately after the merger is greater than the aggregate
266266 15 of the amounts represented in this State of the paid-in
267267 16 capital of such of the merged corporations as were
268268 17 authorized to transact business in this State at the time
269269 18 of the merger, as last reported by them in any documents,
270270 19 other than annual reports, required by this Act to be
271271 20 filed in the office of the Secretary of State; and in
272272 21 addition, the surviving corporation shall be liable for a
273273 22 further additional franchise tax on the paid-in capital of
274274 23 each of the merged corporations as last reported by them
275275 24 in any document, other than an annual report, required by
276276 25 this Act to be filed with the Secretary of State, from
277277 26 their taxable year end to the next succeeding anniversary
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288288 1 month or, in the case of a corporation which has
289289 2 established an extended filing month, the extended filing
290290 3 month of the surviving corporation; however if the taxable
291291 4 year ends within the 2-month period immediately preceding
292292 5 the anniversary month or the extended filing month of the
293293 6 surviving corporation, the tax will be computed to the
294294 7 anniversary or, extended filing month of the surviving
295295 8 corporation in the next succeeding calendar year.
296296 9 (d) An annual franchise tax payable each year with any
297297 10 annual report which the corporation is required by this
298298 11 Act to file.
299299 12 On or after January 1, 2020 and prior to January 1, 2021,
300300 13 the first $30 in liability is exempt from the tax imposed under
301301 14 this Section. On or after January 1, 2021 and prior to January
302302 15 1, 2025, the first $1,000 in liability is exempt from the tax
303303 16 imposed under this Section.The provisions of this Section
304304 17 shall not require the payment of any franchise tax that would
305305 18 otherwise have been due and payable on or after January 1,
306306 19 2025. There shall be no refunds or proration of franchise tax
307307 20 for any taxes due and payable on or after January 1, 2025 on
308308 21 the basis that a portion of the corporation's taxable year
309309 22 extends beyond January 1, 2025.
310310 23 This Section is repealed on January 1, 2026.
311311 24 (Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21;
312312 25 102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)
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323323 1 (805 ILCS 5/15.97) (from Ch. 32, par. 15.97)
324324 2 Sec. 15.97. Corporate Franchise Tax Refund Fund.
325325 3 (a) Beginning July 1, 1993, a percentage of the amounts
326326 4 collected under Sections 15.35, 15.45, 15.65, and 15.75 of
327327 5 this Act shall be deposited into the Corporate Franchise Tax
328328 6 Refund Fund, a special Fund hereby created in the State
329329 7 treasury. From July 1, 1993, until December 31, 1994, there
330330 8 shall be deposited into the Fund 3% of the amounts received
331331 9 under those Sections. Beginning January 1, 1995, and for each
332332 10 fiscal year beginning thereafter, 2% of the amounts collected
333333 11 under those Sections during the preceding fiscal year shall be
334334 12 deposited into the Fund.
335335 13 (b) Beginning July 1, 1993, moneys in the Fund shall be
336336 14 expended exclusively for the purpose of paying refunds payable
337337 15 because of overpayment of franchise taxes, penalties, or
338338 16 interest under Sections 13.70, 15.35, 15.45, 15.65, 15.75, and
339339 17 16.05 of this Act and making transfers authorized under this
340340 18 Section. Refunds in accordance with the provisions of
341341 19 subsections (f) and (g) of Section 1.15 and Section 1.17 of
342342 20 this Act may be made from the Fund only to the extent that
343343 21 amounts collected under Sections 15.35, 15.45, 15.65, and
344344 22 15.75 of this Act have been deposited in the Fund and remain
345345 23 available. On or before August 31 of each year, the balance in
346346 24 the Fund in excess of $100,000 shall be transferred to the
347347 25 General Revenue Fund. Notwithstanding the provisions of this
348348 26 subsection, for the period commencing on or after July 1,
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359359 1 2022, amounts in the fund shall not be transferred to the
360360 2 General Revenue Fund and shall be used to pay refunds in
361361 3 accordance with the provisions of this Act. Within a
362362 4 reasonable time after December 31, 2024, but no later than
363363 5 December 31, 2025, the Secretary of State shall direct and the
364364 6 Comptroller shall order transferred to the General Revenue
365365 7 Fund all amounts remaining in the fund.
366366 8 (c) This Act shall constitute an irrevocable and
367367 9 continuing appropriation from the Corporate Franchise Tax
368368 10 Refund Fund for the purpose of paying refunds upon the order of
369369 11 the Secretary of State in accordance with the provisions of
370370 12 this Section.
371371 13 (d) This Section is repealed on January 1, 2026.
372372 14 (Source: P.A. 102-282, eff. 1-1-22; 103-8, eff. 6-7-23.)
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