IL
Illinois Senate Bill SB3488

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3488 Compare Versions

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11 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3488 Introduced 2/9/2024, by Sen. Win Stoller 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 5/15.98 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, 2025. Repeals on January 1, 2026 the provisions in the Act that establish the corporate franchise tax. 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 37894 HLH 68025 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3488 Introduced 2/9/2024, by Sen. Win Stoller 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 5/15.98 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, 2025. Repeals on January 1, 2026 the provisions in the Act that establish the corporate franchise tax. 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 37894 HLH 68025 b LRB103 37894 HLH 68025 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3488 Introduced 2/9/2024, by Sen. Win Stoller 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 5/15.98 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
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 5/15.98 new
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. Repeals on January 1, 2026 the provisions in the Act that establish the corporate franchise tax. 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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1313 1 AN ACT concerning revenue.
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 and 15.65 and by adding Section
1818 6 15.98 as follows:
1919 7 (805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
2020 8 (Text of Section from P.A. 102-16 and 103-8)
2121 9 Sec. 15.35. Franchise taxes payable by domestic
2222 10 corporations. For the privilege of exercising its franchises
2323 11 in this State, each domestic corporation shall pay to the
2424 12 Secretary of State the following franchise taxes, computed on
2525 13 the basis, at the rates and for the periods prescribed in this
2626 14 Act:
2727 15 (a) An initial franchise tax at the time of filing its
2828 16 first report of issuance of shares.
2929 17 (b) An additional franchise tax at the time of filing
3030 18 (1) a report of the issuance of additional shares, or (2) a
3131 19 report of an increase in paid-in capital without the
3232 20 issuance of shares, or (3) an amendment to the articles of
3333 21 incorporation or a report of cumulative changes in paid-in
3434 22 capital, whenever any amendment or such report discloses
3535 23 an increase in its paid-in capital over the amount thereof
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3939 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3488 Introduced 2/9/2024, by Sen. Win Stoller 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 5/15.98 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
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 5/15.98 new
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. Repeals on January 1, 2026 the provisions in the Act that establish the corporate franchise tax. 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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7474 1 last reported in any document, other than an annual
7575 2 report, interim annual report or final transition annual
7676 3 report required by this Act to be filed in the office of
7777 4 the Secretary of State.
7878 5 (c) An additional franchise tax at the time of filing
7979 6 a report of paid-in capital following a statutory merger
8080 7 or consolidation, which discloses that the paid-in capital
8181 8 of the surviving or new corporation immediately after the
8282 9 merger or consolidation is greater than the sum of the
8383 10 paid-in capital of all of the merged or consolidated
8484 11 corporations as last reported by them in any documents,
8585 12 other than annual reports, required by this Act to be
8686 13 filed in the office of the Secretary of State; and in
8787 14 addition, the surviving or new corporation shall be liable
8888 15 for a further additional franchise tax on the paid-in
8989 16 capital of each of the merged or consolidated corporations
9090 17 as last reported by them in any document, other than an
9191 18 annual report, required by this Act to be filed with the
9292 19 Secretary of State from their taxable year end to the next
9393 20 succeeding anniversary month or, in the case of a
9494 21 corporation which has established an extended filing
9595 22 month, the extended filing month of the surviving or new
9696 23 corporation; however if the taxable year ends within the
9797 24 2-month period immediately preceding the anniversary month
9898 25 or, in the case of a corporation which has established an
9999 26 extended filing month, the extended filing month of the
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110110 1 surviving or new corporation the tax will be computed to
111111 2 the anniversary month or, in the case of a corporation
112112 3 which has established an extended filing month, the
113113 4 extended filing month of the surviving or new corporation
114114 5 in the next succeeding calendar year.
115115 6 (d) An annual franchise tax payable each year with the
116116 7 annual report which the corporation is required by this
117117 8 Act to file.
118118 9 On or after January 1, 2020 and before prior to January 1,
119119 10 2021, the first $30 in liability is exempt from the tax imposed
120120 11 under this Section. On or after January 1, 2021, and before
121121 12 prior to January 1, 2024, the first $1,000 in liability is
122122 13 exempt from the tax imposed under this Section. On or after
123123 14 January 1, 2024 and before January 1, 2025, the first $5,000 in
124124 15 liability is exempt from the tax imposed under this Section.
125125 16 The provisions of this Section shall not require the payment
126126 17 of any franchise tax that would otherwise have been due and
127127 18 payable on or after January 1, 2025. There shall be no refunds
128128 19 or proration of franchise tax for any taxes due and payable on
129129 20 or after January 1, 2025 on the basis that a portion of the
130130 21 corporation's taxable year extends beyond January 1, 2025.
131131 22 This Section is repealed on January 1, 2026.
132132 23 (Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
133133 24 (Text of Section from P.A. 102-282, 102-558, and 103-8)
134134 25 Sec. 15.35. Franchise taxes payable by domestic
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145145 1 corporations. For the privilege of exercising its franchises
146146 2 in this State, each domestic corporation shall pay to the
147147 3 Secretary of State the following franchise taxes, computed on
148148 4 the basis, at the rates and for the periods prescribed in this
149149 5 Act:
150150 6 (a) An initial franchise tax at the time of filing its
151151 7 first report of issuance of shares.
152152 8 (b) An additional franchise tax at the time of filing
153153 9 (1) a report of the issuance of additional shares, or (2) a
154154 10 report of an increase in paid-in capital without the
155155 11 issuance of shares, or (3) an amendment to the articles of
156156 12 incorporation or a report of cumulative changes in paid-in
157157 13 capital, whenever any amendment or such report discloses
158158 14 an increase in its paid-in capital over the amount thereof
159159 15 last reported in any document, other than an annual
160160 16 report, interim annual report or final transition annual
161161 17 report required by this Act to be filed in the office of
162162 18 the Secretary of State.
163163 19 (c) An additional franchise tax at the time of filing
164164 20 a report of paid-in capital following a statutory merger
165165 21 or consolidation, which discloses that the paid-in capital
166166 22 of the surviving or new corporation immediately after the
167167 23 merger or consolidation is greater than the sum of the
168168 24 paid-in capital of all of the merged or consolidated
169169 25 corporations as last reported by them in any documents,
170170 26 other than annual reports, required by this Act to be
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181181 1 filed in the office of the Secretary of State; and in
182182 2 addition, the surviving or new corporation shall be liable
183183 3 for a further additional franchise tax on the paid-in
184184 4 capital of each of the merged or consolidated corporations
185185 5 as last reported by them in any document, other than an
186186 6 annual report, required by this Act to be filed with the
187187 7 Secretary of State from their taxable year end to the next
188188 8 succeeding anniversary month or, in the case of a
189189 9 corporation which has established an extended filing
190190 10 month, the extended filing month of the surviving or new
191191 11 corporation; however if the taxable year ends within the
192192 12 2-month period immediately preceding the anniversary month
193193 13 or, in the case of a corporation which has established an
194194 14 extended filing month, the extended filing month of the
195195 15 surviving or new corporation the tax will be computed to
196196 16 the anniversary month or, in the case of a corporation
197197 17 which has established an extended filing month, the
198198 18 extended filing month of the surviving or new corporation
199199 19 in the next succeeding calendar year.
200200 20 (d) An annual franchise tax payable each year with the
201201 21 annual report which the corporation is required by this
202202 22 Act to file.
203203 23 On or after January 1, 2020 and before prior to January 1,
204204 24 2021, the first $30 in liability is exempt from the tax imposed
205205 25 under this Section. On or after January 1, 2021 and before
206206 26 prior to January 1, 2024, the first $1,000 in liability is
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217217 1 exempt from the tax imposed under this Section. On or after
218218 2 January 1, 2024 and before January 1, 2025, the first $5,000 in
219219 3 liability is exempt from the tax imposed under this Section.
220220 4 The provisions of this Section shall not require the payment
221221 5 of any franchise tax that would otherwise have been due and
222222 6 payable on or after January 1, 2025. There shall be no refunds
223223 7 or proration of franchise tax for any taxes due and payable on
224224 8 or after January 1, 2025 on the basis that a portion of the
225225 9 corporation's taxable year extends beyond January 1, 2025.
226226 10 This Section is repealed on January 1, 2026.
227227 11 (Source: P.A. 102-282, eff. 1-1-22; 102-558, eff. 8-20-21;
228228 12 103-8, eff. 6-7-23.)
229229 13 (805 ILCS 5/15.65) (from Ch. 32, par. 15.65)
230230 14 Sec. 15.65. Franchise taxes payable by foreign
231231 15 corporations. For the privilege of exercising its authority to
232232 16 transact such business in this State as set out in its
233233 17 application therefor or any amendment thereto, each foreign
234234 18 corporation shall pay to the Secretary of State the following
235235 19 franchise taxes, computed on the basis, at the rates and for
236236 20 the periods prescribed in this Act:
237237 21 (a) An initial franchise tax at the time of filing its
238238 22 application for authority to transact business in this
239239 23 State.
240240 24 (b) An additional franchise tax at the time of filing
241241 25 (1) a report of the issuance of additional shares, or (2) a
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252252 1 report of an increase in paid-in capital without the
253253 2 issuance of shares, or (3) a report of cumulative changes
254254 3 in paid-in capital or a report of an exchange or
255255 4 reclassification of shares, whenever any such report
256256 5 discloses an increase in its paid-in capital over the
257257 6 amount thereof last reported in any document, other than
258258 7 an annual report, interim annual report or final
259259 8 transition annual report, required by this Act to be filed
260260 9 in the office of the Secretary of State.
261261 10 (c) Whenever the corporation shall be a party to a
262262 11 statutory merger and shall be the surviving corporation,
263263 12 an additional franchise tax at the time of filing its
264264 13 report following merger, if such report discloses that the
265265 14 amount represented in this State of its paid-in capital
266266 15 immediately after the merger is greater than the aggregate
267267 16 of the amounts represented in this State of the paid-in
268268 17 capital of such of the merged corporations as were
269269 18 authorized to transact business in this State at the time
270270 19 of the merger, as last reported by them in any documents,
271271 20 other than annual reports, required by this Act to be
272272 21 filed in the office of the Secretary of State; and in
273273 22 addition, the surviving corporation shall be liable for a
274274 23 further additional franchise tax on the paid-in capital of
275275 24 each of the merged corporations as last reported by them
276276 25 in any document, other than an annual report, required by
277277 26 this Act to be filed with the Secretary of State, from
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288288 1 their taxable year end to the next succeeding anniversary
289289 2 month or, in the case of a corporation which has
290290 3 established an extended filing month, the extended filing
291291 4 month of the surviving corporation; however if the taxable
292292 5 year ends within the 2-month period immediately preceding
293293 6 the anniversary month or the extended filing month of the
294294 7 surviving corporation, the tax will be computed to the
295295 8 anniversary or, extended filing month of the surviving
296296 9 corporation in the next succeeding calendar year.
297297 10 (d) An annual franchise tax payable each year with any
298298 11 annual report which the corporation is required by this
299299 12 Act to file.
300300 13 On or after January 1, 2020 and before prior to January 1,
301301 14 2021, the first $30 in liability is exempt from the tax imposed
302302 15 under this Section. On or after January 1, 2021 and before
303303 16 January 1, 2025, the first $1,000 in liability is exempt from
304304 17 the tax imposed under this Section. The provisions of this
305305 18 Section shall not require the payment of any franchise tax
306306 19 that would otherwise have been due and payable on or after
307307 20 January 1, 2025. There shall be no refunds or proration of
308308 21 franchise tax for any taxes due and payable on or after January
309309 22 1, 2025 on the basis that a portion of the corporation's
310310 23 taxable year extends beyond January 1, 2025. This amendatory
311311 24 Act of the 103rd General Assembly shall not affect any right
312312 25 accrued or established, or any liability or penalty incurred
313313 26 prior to January 1, 2025.
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324324 1 This Section is repealed on January 1, 2026.
325325 2 (Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21;
326326 3 102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)
327327 4 (805 ILCS 5/15.98 new)
328328 5 Sec. 15.98. Preparation of bill. The Legislative Reference
329329 6 Bureau shall prepare for introduction in the 2025 spring
330330 7 session of the General Assembly a bill effecting such changes
331331 8 in the statutes as may be necessary to conform the statutes to
332332 9 the changes in law made by this amendatory Act of the 103rd
333333 10 General Assembly.
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