Bill Text: IL HB0283 | 2021-2022 | 102nd General Assembly | Introduced


Bill Title: Creates the Financial Transaction Tax Act. Beginning January 1, 2022, 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, 2022.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2021-03-04 - To Sales, Amusement, & Other Taxes Subcommittee [HB0283 Detail]

Download: Illinois-2021-HB0283-Introduced.html


102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0283

Introduced , by Rep. Mary E. Flowers

SYNOPSIS AS INTRODUCED:
New Act
5 ILCS 100/5-45.8 new

Creates the Financial Transaction Tax Act. Beginning January 1, 2022, 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, 2022.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning revenue.
2 WHEREAS, The State of Illinois currently faces a serious
3budget crisis; and
4 WHEREAS, A financial transaction tax is a fair and
5sustainable source of revenue for the State; and
6 WHEREAS, A financial transaction tax will promote job
7growth and economic stability and reduce the negative effects
8created by high frequency trading; therefore
9 Be it enacted by the People of the State of Illinois,
10represented in the General Assembly:
11 Section 1. Short title. This Act may be cited as the
12Financial Transaction Tax Act.
13 Section 3. Definitions. As used in this Act:
14 "Department" means the Department of Revenue.
15 "Financial transaction" means a transaction involving the
16purchase or sale of a stock contract, futures contract,
17futures options contract, swap contract, credit default swap
18contract, or options contract, but does not include a
19transaction involving securities held in a retirement account
20or a transaction involving a mutual fund.

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1 Section 5. Tax imposed; definitions.
2 (a) Beginning January 1, 2022, a tax is imposed on the
3privilege of engaging in a financial transaction on any of the
4following exchanges or boards of trade: the Chicago Stock
5Exchange; the Chicago Mercantile Exchange; the Chicago Board
6of Trade; or the Chicago Board Options Exchange. The tax is
7imposed at a rate of $1 for each transaction for which the
8underlying asset is an agricultural product, a financial
9instruments contract, or an options contract. The tax shall be
10paid by the trading facility or, in any other case, by the
11purchaser involved in the transaction. All transactions
12executed via open outcry that are physically filled on the
13exchange floor are exempt from the tax.
14 (b) The tax shall be collected by the exchange or board of
15trade and shall be remitted to the Department of Revenue
16biannually in the form and manner required by the Department.
17The exchange or board of trade may retain 5% of the amount
18collected, which is allowed to reimburse the exchange or board
19of trade for the expenses incurred in keeping records,
20preparing and filing returns, remitting the tax, and supplying
21data to the Department on request.
22 (c) Subject to the provisions of subsection (b), the tax
23imposed under this Act, and all civil penalties that may be
24assessed as an incident thereof, shall be administered,
25collected, and enforced by the Department of Revenue, and

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1commodity brokers shall register with the Department in the
2same manner as required under the Retailers' Occupation Tax
3Act insofar as may be applicable. The Department of Revenue
4has full power to administer and enforce this Act, to collect
5all taxes and penalties due under this Act, to dispose of taxes
6and penalties so collected as provided in this Act, and to
7determine all rights to credit memoranda arising on account of
8the erroneous payment of a tax or penalty under this Act. The
9Department of Revenue shall pay over to the State Treasurer
10all moneys remitted to the Department under this Act for
11deposit into the General Revenue Fund.
12 Section 10. Recordkeeping. Each exchange or board of trade
13that is subject to the tax under this Act shall keep records
14and books of all transactions giving rise to a tax under this
15Act. Those books and records shall be kept in the English
16language and shall, at all times during business hours of the
17day, be subject to inspection by the Department or its duly
18authorized agents and employees.
19 Section 15. Retailers' Occupation Tax Act and Uniform
20Penalty and Interest Act adopted. The provisions of Sections
214, 5, 5f, 5i, 6, 6a, 6b, 6c, 8, 9, 10, and 12 of the Retailers'
22Occupation Tax Act which are not inconsistent with this Act,
23and Section 3-7 of the Uniform Penalty and Interest Act, shall
24apply as far as practicable to the subject matter of this Act

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1to the same extent as if those provisions were included in this
2Act.
3 Section 20. Rules. The Department shall adopt
4administrative rules to implement and administer this Act.
5Initial rules may be adopted as emergency rules.
6 Section 25. Interstate commerce exemption. No tax is
7imposed under this Act upon the privilege of engaging in a
8business in interstate commerce or otherwise when the business
9may not, under the Constitution and statutes of the United
10States, be made the subject of taxation by this State.
11 Section 900. The Illinois Administrative Procedure Act is
12amended by adding Section 5-45.8 as follows:
13 (5 ILCS 100/5-45.8 new)
14 Sec. 5-45.8. Emergency rulemaking. To provide for the
15expeditious and timely implementation of the Financial
16Transaction Tax Act, emergency rules implementing the
17Financial Transaction Tax Act may be adopted in accordance
18with Section 5-45 by the Department of Revenue. The adoption
19of emergency rules authorized by Section 5-45 and this Section
20is deemed to be necessary for the public interest, safety, and
21welfare.
22 Section 999. Effective date. This Act takes effect January

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