Illinois 2023-2024 Regular Session

Illinois Senate Bill SB2351 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 SB2351 Introduced 2/10/2023, by Sen. Rachel Ventura 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 28233 DTM 54612 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2351 Introduced 2/10/2023, by Sen. Rachel Ventura 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 28233 DTM 54612 b LRB103 28233 DTM 54612 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2351 Introduced 2/10/2023, by Sen. Rachel Ventura 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.
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10	10	SB2351LRB103 28233 DTM 54612 b SB2351 LRB103 28233 DTM 54612 b
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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 3. Definitions. As used in this Act:
18	18	7 "Department" means the Department of Revenue.
19	19	8 "Financial transaction" means a transaction involving the
20	20	9 purchase or sale of a stock contract, futures contract,
21	21	10 futures options contract, swap contract, credit default swap
22	22	11 contract, or options contract, but does not include a
23	23	12 transaction involving securities held in a retirement account
24	24	13 or a transaction involving a mutual fund.
25	25	14 Section 5. Tax imposed; definitions.
26	26	15 (a) Beginning January 1, 2024, a tax is imposed on the
27	27	16 privilege of engaging in a financial transaction on any of the
28	28	17 following exchanges or boards of trade: the Chicago Stock
29	29	18 Exchange; the Chicago Mercantile Exchange; the Chicago Board
30	30	19 of Trade; or the Chicago Board Options Exchange. The tax is
31	31	20 imposed at a rate of $1 for each transaction for which the
32	32	21 underlying asset is an agricultural product, a financial
33	33	22 instruments contract, or an options contract. The tax shall be
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2351 Introduced 2/10/2023, by Sen. Rachel Ventura SYNOPSIS AS INTRODUCED:
38	38	New Act5 ILCS 100/5-45.35 new New Act 5 ILCS 100/5-45.35 new
39	39	New Act
40	40	5 ILCS 100/5-45.35 new
41	41	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.
42	42	LRB103 28233 DTM 54612 b LRB103 28233 DTM 54612 b
43	43	LRB103 28233 DTM 54612 b
44	44	A BILL FOR
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50	50	New Act
51	51	5 ILCS 100/5-45.35 new
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70	70	1 paid by the trading facility or, in any other case, by the
71	71	2 purchaser involved in the transaction. All transactions
72	72	3 executed via open outcry that are physically filled on the
73	73	4 exchange floor are exempt from the tax.
74	74	5 (b) The tax shall be collected by the exchange or board of
75	75	6 trade and shall be remitted to the Department of Revenue
76	76	7 biannually in the form and manner required by the Department.
77	77	8 The exchange or board of trade may retain 5% of the amount
78	78	9 collected, which is allowed to reimburse the exchange or board
79	79	10 of trade for the expenses incurred in keeping records,
80	80	11 preparing and filing returns, remitting the tax, and supplying
81	81	12 data to the Department on request.
82	82	13 (c) Subject to the provisions of subsection (b), the tax
83	83	14 imposed under this Act, and all civil penalties that may be
84	84	15 assessed as an incident thereof, shall be administered,
85	85	16 collected, and enforced by the Department of Revenue, and
86	86	17 commodity brokers shall register with the Department in the
87	87	18 same manner as required under the Retailers' Occupation Tax
88	88	19 Act insofar as may be applicable. The Department of Revenue
89	89	20 has full power to administer and enforce this Act, to collect
90	90	21 all taxes and penalties due under this Act, to dispose of taxes
91	91	22 and penalties so collected as provided in this Act, and to
92	92	23 determine all rights to credit memoranda arising on account of
93	93	24 the erroneous payment of a tax or penalty under this Act. The
94	94	25 Department of Revenue shall pay over to the State Treasurer
95	95	26 all moneys remitted to the Department under this Act for
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106	106	1 deposit into the General Revenue Fund.
107	107	2 Section 10. Recordkeeping. Each exchange or board of trade
108	108	3 that is subject to the tax under this Act shall keep records
109	109	4 and books of all transactions giving rise to a tax under this
110	110	5 Act. Those books and records shall be kept in the English
111	111	6 language and shall, at all times during business hours of the
112	112	7 day, be subject to inspection by the Department or its duly
113	113	8 authorized agents and employees.
114	114	9 Section 15. Retailers' Occupation Tax Act and Uniform
115	115	10 Penalty and Interest Act adopted. The provisions of Sections
116	116	11 4, 5, 5f, 5i, 6, 6a, 6b, 6c, 8, 9, 10, and 12 of the Retailers'
117	117	12 Occupation Tax Act which are not inconsistent with this Act,
118	118	13 and Section 3-7 of the Uniform Penalty and Interest Act, shall
119	119	14 apply as far as practicable to the subject matter of this Act
120	120	15 to the same extent as if those provisions were included in this
121	121	16 Act.
122	122	17 Section 20. Rules. The Department shall adopt
123	123	18 administrative rules to implement and administer this Act.
124	124	19 Initial rules may be adopted as emergency rules.
125	125	20 Section 25. Interstate commerce exemption. No tax is
126	126	21 imposed under this Act upon the privilege of engaging in a
127	127	22 business in interstate commerce or otherwise when the business
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138	138	1 may not, under the Constitution and statutes of the United
139	139	2 States, be made the subject of taxation by this State.
140	140	3 Section 900. The Illinois Administrative Procedure Act is
141	141	4 amended by adding Section 5-45.35 as follows:
142	142	5 (5 ILCS 100/5-45.35 new)
143	143	6 Sec. 5-45.35. Emergency rulemaking.To provide for the
144	144	7 expeditious and timely implementation of the Financial
145	145	8 Transaction Tax Act, emergency rules implementing the
146	146	9 Financial Transaction Tax Act may be adopted in accordance
147	147	10 with Section 5-45 by the Department of Revenue. The adoption
148	148	11 of emergency rules authorized by Section 5-45 and this Section
149	149	12 is deemed to be necessary for the public interest,safety, and
150	150	13 welfare. This Section is repealed one year after the effective
151	151	14 date of this amendatory Act of the 103rd General Assembly.
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