103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1406 Introduced 2/6/2023, by Sen. Win Stoller 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 5/15.98 new 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, 2024. Repeals those Sections on January 1, 2025. Directs the Legislative Reference Bureau to prepare a bill effecting necessary changes to conform the statutes to the changes made by the amendatory Act. Effective immediately. LRB103 04503 HLH 49509 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1406 Introduced 2/6/2023, by Sen. Win Stoller 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 5/15.98 new 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 805 ILCS 5/15.98 new 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, 2024. Repeals those Sections on January 1, 2025. Directs the Legislative Reference Bureau to prepare a bill effecting necessary changes to conform the statutes to the changes made by the amendatory Act. Effective immediately. LRB103 04503 HLH 49509 b LRB103 04503 HLH 49509 b A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1406 Introduced 2/6/2023, by Sen. Win Stoller 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 5/15.98 new 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 805 ILCS 5/15.98 new
805 ILCS 5/15.35 from Ch. 32, par. 15.35
805 ILCS 5/15.65 from Ch. 32, par. 15.65
805 ILCS 5/15.98 new
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, 2024. Repeals those Sections on January 1, 2025. Directs the Legislative Reference Bureau to prepare a bill effecting necessary changes to conform the statutes to the changes made by the amendatory Act. Effective immediately.
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A BILL FOR
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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Business Corporation Act of 1983 is amended
5 by changing Sections 15.35 and 15.65 and by adding Section
6 15.98 as follows:
7 (805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
8 (Text of Section from P.A. 102-16)
9 Sec. 15.35. Franchise taxes payable by domestic
10 corporations. For the privilege of exercising its franchises
11 in this State, each domestic corporation shall pay to the
12 Secretary of State the following franchise taxes, computed on
13 the basis, at the rates and for the periods prescribed in this
14 Act:
15 (a) An initial franchise tax at the time of filing its
16 first report of issuance of shares.
17 (b) An additional franchise tax at the time of filing
18 (1) a report of the issuance of additional shares, or (2) a
19 report of an increase in paid-in capital without the
20 issuance of shares, or (3) an amendment to the articles of
21 incorporation or a report of cumulative changes in paid-in
22 capital, whenever any amendment or such report discloses
23 an increase in its paid-in capital over the amount thereof
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1406 Introduced 2/6/2023, by Sen. Win Stoller 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 5/15.98 new 805 ILCS 5/15.35 from Ch. 32, par. 15.35 805 ILCS 5/15.65 from Ch. 32, par. 15.65 805 ILCS 5/15.98 new
805 ILCS 5/15.35 from Ch. 32, par. 15.35
805 ILCS 5/15.65 from Ch. 32, par. 15.65
805 ILCS 5/15.98 new
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, 2024. Repeals those Sections on January 1, 2025. Directs the Legislative Reference Bureau to prepare a bill effecting necessary changes to conform the statutes to the changes made by the amendatory Act. Effective immediately.
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A BILL FOR
805 ILCS 5/15.35 from Ch. 32, par. 15.35
805 ILCS 5/15.65 from Ch. 32, par. 15.65
805 ILCS 5/15.98 new
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1 last reported in any document, other than an annual
2 report, interim annual report or final transition annual
3 report required by this Act to be filed in the office of
4 the Secretary of State.
5 (c) An additional franchise tax at the time of filing
6 a report of paid-in capital following a statutory merger
7 or consolidation, which discloses that the paid-in capital
8 of the surviving or new corporation immediately after the
9 merger or consolidation is greater than the sum of the
10 paid-in capital of all of the merged or consolidated
11 corporations as last reported by them in any documents,
12 other than annual reports, required by this Act to be
13 filed in the office of the Secretary of State; and in
14 addition, the surviving or new corporation shall be liable
15 for a further additional franchise tax on the paid-in
16 capital of each of the merged or consolidated corporations
17 as last reported by them in any document, other than an
18 annual report, required by this Act to be filed with the
19 Secretary of State from their taxable year end to the next
20 succeeding anniversary month or, in the case of a
21 corporation which has established an extended filing
22 month, the extended filing month of the surviving or new
23 corporation; however if the taxable year ends within the
24 2-month period immediately preceding the anniversary month
25 or, in the case of a corporation which has established an
26 extended filing month, the extended filing month of the
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1 surviving or new corporation the tax will be computed to
2 the anniversary month or, in the case of a corporation
3 which has established an extended filing month, the
4 extended filing month of the surviving or new corporation
5 in the next succeeding calendar year.
6 (d) An annual franchise tax payable each year with the
7 annual report which the corporation is required by this
8 Act to file.
9 On or after January 1, 2020 and before prior to January 1,
10 2021, the first $30 in liability is exempt from the tax imposed
11 under this Section. On or after January 1, 2021 and before
12 January 1, 2022, the first $1,000 in liability is exempt from
13 the tax imposed under this Section. On or after January 1, 2022
14 and before January 1, 2023, the first $10,000 in liability is
15 exempt from the tax imposed under this Section. On or after
16 January 1, 2023 and before January 1, 2024, the first $100,000
17 in liability is exempt from the tax imposed under this
18 Section. The provisions of this Section shall not require the
19 payment of any franchise tax that would otherwise have been
20 due and payable on or after January 1, 2024. There shall be no
21 refunds or proration of franchise tax for any taxes due and
22 payable on or after January 1, 2024 on the basis that a portion
23 of the corporation's taxable year extends beyond January 1,
24 2024. Public Act 101-9 shall not affect any right accrued or
25 established, or any liability or penalty incurred prior to
26 January 1, 2024.
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1 This Section is repealed on January 1, 2025.
2 (Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21.)
3 (Text of Section from P.A. 102-282)
4 Sec. 15.35. Franchise taxes payable by domestic
5 corporations. For the privilege of exercising its franchises
6 in this State, each domestic corporation shall pay to the
7 Secretary of State the following franchise taxes, computed on
8 the basis, at the rates and for the periods prescribed in this
9 Act:
10 (a) An initial franchise tax at the time of filing its
11 first report of issuance of shares.
12 (b) An additional franchise tax at the time of filing
13 (1) a report of the issuance of additional shares, or (2) a
14 report of an increase in paid-in capital without the
15 issuance of shares, or (3) an amendment to the articles of
16 incorporation or a report of cumulative changes in paid-in
17 capital, whenever any amendment or such report discloses
18 an increase in its paid-in capital over the amount thereof
19 last reported in any document, other than an annual
20 report, interim annual report or final transition annual
21 report required by this Act to be filed in the office of
22 the Secretary of State.
23 (c) An additional franchise tax at the time of filing
24 a report of paid-in capital following a statutory merger
25 or consolidation, which discloses that the paid-in capital
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1 of the surviving or new corporation immediately after the
2 merger or consolidation is greater than the sum of the
3 paid-in capital of all of the merged or consolidated
4 corporations as last reported by them in any documents,
5 other than annual reports, required by this Act to be
6 filed in the office of the Secretary of State; and in
7 addition, the surviving or new corporation shall be liable
8 for a further additional franchise tax on the paid-in
9 capital of each of the merged or consolidated corporations
10 as last reported by them in any document, other than an
11 annual report, required by this Act to be filed with the
12 Secretary of State from their taxable year end to the next
13 succeeding anniversary month or, in the case of a
14 corporation which has established an extended filing
15 month, the extended filing month of the surviving or new
16 corporation; however if the taxable year ends within the
17 2-month period immediately preceding the anniversary month
18 or, in the case of a corporation which has established an
19 extended filing month, the extended filing month of the
20 surviving or new corporation the tax will be computed to
21 the anniversary month or, in the case of a corporation
22 which has established an extended filing month, the
23 extended filing month of the surviving or new corporation
24 in the next succeeding calendar year.
25 (d) An annual franchise tax payable each year with the
26 annual report which the corporation is required by this
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1 Act to file.
2 On or after January 1, 2020 and before prior to January 1,
3 2021, the first $30 in liability is exempt from the tax imposed
4 under this Section. On or after January 1, 2021 and before
5 prior to January 1, 2022, the first $1,000 in liability is
6 exempt from the tax imposed under this Section. On or after
7 January 1, 2022 and before prior to January 1, 2023, the first
8 $10,000 in liability is exempt from the tax imposed under this
9 Section. On or after January 1, 2023 and before prior to
10 January 1, 2024, the first $100,000 in liability is exempt
11 from the tax imposed under this Section. The provisions of
12 this Section shall not require the payment of any franchise
13 tax that would otherwise have been due and payable on or after
14 January 1, 2024. There shall be no refunds or proration of
15 franchise tax for any taxes due and payable on or after January
16 1, 2024 on the basis that a portion of the corporation's
17 taxable year extends beyond January 1, 2024. Public Act 101-9
18 shall not affect any right accrued or established, or any
19 liability or penalty incurred prior to January 1, 2024.
20 This Section is repealed on January 1, 2025 December 31,
21 2024.
22 (Source: P.A. 101-9, eff. 6-5-19; 102-282, eff. 1-1-22.)
23 (Text of Section from P.A. 102-558)
24 Sec. 15.35. Franchise taxes payable by domestic
25 corporations. For the privilege of exercising its franchises
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1 in this State, each domestic corporation shall pay to the
2 Secretary of State the following franchise taxes, computed on
3 the basis, at the rates and for the periods prescribed in this
4 Act:
5 (a) An initial franchise tax at the time of filing its
6 first report of issuance of shares.
7 (b) An additional franchise tax at the time of filing
8 (1) a report of the issuance of additional shares, or (2) a
9 report of an increase in paid-in capital without the
10 issuance of shares, or (3) an amendment to the articles of
11 incorporation or a report of cumulative changes in paid-in
12 capital, whenever any amendment or such report discloses
13 an increase in its paid-in capital over the amount thereof
14 last reported in any document, other than an annual
15 report, interim annual report or final transition annual
16 report required by this Act to be filed in the office of
17 the Secretary of State.
18 (c) An additional franchise tax at the time of filing
19 a report of paid-in capital following a statutory merger
20 or consolidation, which discloses that the paid-in capital
21 of the surviving or new corporation immediately after the
22 merger or consolidation is greater than the sum of the
23 paid-in capital of all of the merged or consolidated
24 corporations as last reported by them in any documents,
25 other than annual reports, required by this Act to be
26 filed in the office of the Secretary of State; and in
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1 addition, the surviving or new corporation shall be liable
2 for a further additional franchise tax on the paid-in
3 capital of each of the merged or consolidated corporations
4 as last reported by them in any document, other than an
5 annual report, required by this Act to be filed with the
6 Secretary of State from their taxable year end to the next
7 succeeding anniversary month or, in the case of a
8 corporation which has established an extended filing
9 month, the extended filing month of the surviving or new
10 corporation; however if the taxable year ends within the
11 2-month period immediately preceding the anniversary month
12 or, in the case of a corporation which has established an
13 extended filing month, the extended filing month of the
14 surviving or new corporation the tax will be computed to
15 the anniversary month or, in the case of a corporation
16 which has established an extended filing month, the
17 extended filing month of the surviving or new corporation
18 in the next succeeding calendar year.
19 (d) An annual franchise tax payable each year with the
20 annual report which the corporation is required by this
21 Act to file.
22 On or after January 1, 2020 and before prior to January 1,
23 2021, the first $30 in liability is exempt from the tax imposed
24 under this Section. On or after January 1, 2021 and before
25 prior to January 1, 2022, the first $1,000 in liability is
26 exempt from the tax imposed under this Section. On or after
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1 January 1, 2022 and before prior to January 1, 2023, the first
2 $10,000 in liability is exempt from the tax imposed under this
3 Section. On or after January 1, 2023 and before prior to
4 January 1, 2024, the first $100,000 in liability is exempt
5 from the tax imposed under this Section. The provisions of
6 this Section shall not require the payment of any franchise
7 tax that would otherwise have been due and payable on or after
8 January 1, 2024. There shall be no refunds or proration of
9 franchise tax for any taxes due and payable on or after January
10 1, 2024 on the basis that a portion of the corporation's
11 taxable year extends beyond January 1, 2024. Public Act 101-9
12 shall not affect any right accrued or established, or any
13 liability or penalty incurred prior to January 1, 2024.
14 This Section is repealed on January 1, 2025 December 31,
15 2025.
16 (Source: P.A. 101-9, eff. 6-5-19; 102-558, eff. 8-20-21.)
17 (805 ILCS 5/15.65) (from Ch. 32, par. 15.65)
18 Sec. 15.65. Franchise taxes payable by foreign
19 corporations. For the privilege of exercising its authority to
20 transact such business in this State as set out in its
21 application therefor or any amendment thereto, each foreign
22 corporation shall pay to the Secretary of State the following
23 franchise taxes, computed on the basis, at the rates and for
24 the periods prescribed in this Act:
25 (a) An initial franchise tax at the time of filing its
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1 application for authority to transact business in this
2 State.
3 (b) An additional franchise tax at the time of filing
4 (1) a report of the issuance of additional shares, or (2) a
5 report of an increase in paid-in capital without the
6 issuance of shares, or (3) a report of cumulative changes
7 in paid-in capital or a report of an exchange or
8 reclassification of shares, whenever any such report
9 discloses an increase in its paid-in capital over the
10 amount thereof last reported in any document, other than
11 an annual report, interim annual report or final
12 transition annual report, required by this Act to be filed
13 in the office of the Secretary of State.
14 (c) Whenever the corporation shall be a party to a
15 statutory merger and shall be the surviving corporation,
16 an additional franchise tax at the time of filing its
17 report following merger, if such report discloses that the
18 amount represented in this State of its paid-in capital
19 immediately after the merger is greater than the aggregate
20 of the amounts represented in this State of the paid-in
21 capital of such of the merged corporations as were
22 authorized to transact business in this State at the time
23 of the merger, as last reported by them in any documents,
24 other than annual reports, required by this Act to be
25 filed in the office of the Secretary of State; and in
26 addition, the surviving corporation shall be liable for a
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1 further additional franchise tax on the paid-in capital of
2 each of the merged corporations as last reported by them
3 in any document, other than an annual report, required by
4 this Act to be filed with the Secretary of State, from
5 their taxable year end to the next succeeding anniversary
6 month or, in the case of a corporation which has
7 established an extended filing month, the extended filing
8 month of the surviving corporation; however if the taxable
9 year ends within the 2-month period immediately preceding
10 the anniversary month or the extended filing month of the
11 surviving corporation, the tax will be computed to the
12 anniversary or, extended filing month of the surviving
13 corporation in the next succeeding calendar year.
14 (d) An annual franchise tax payable each year with any
15 annual report which the corporation is required by this
16 Act to file.
17 On or after January 1, 2020 and before prior to January 1,
18 2021, the first $30 in liability is exempt from the tax imposed
19 under this Section. On or after January 1, 2021 and before
20 January 1, 2024, the first $1,000 in liability is exempt from
21 the tax imposed under this Section. The provisions of this
22 Section shall not require the payment of any franchise tax
23 that would otherwise have been due and payable on or after
24 January 1, 2024. There shall be no refunds or proration of
25 franchise tax for any taxes due and payable on or after January
26 1, 2024 on the basis that a portion of the corporation's
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1 taxable year extends beyond January 1, 2024. This amendatory
2 Act of the 103rd General Assembly shall not affect any right
3 accrued or established, or any liability or penalty incurred
4 prior to January 1, 2024.
5 This Section is repealed on January 1, 2025.
6 (Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21;
7 102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)
8 (805 ILCS 5/15.98 new)
9 Sec. 15.98. Preparation of bill. The Legislative Reference
10 Bureau shall prepare for introduction in the 2024 spring
11 session of the General Assembly a bill effecting such changes
12 in the statutes as may be necessary to conform the statutes to
13 the changes in law made by this amendatory Act of the 103rd
14 General Assembly.
15 Section 99. Effective date. This Act takes effect upon
16 becoming law.
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