Bill Text: IL SB0127 | 2021-2022 | 102nd General Assembly | Introduced

---

Bill Title: Amends the Business Corporation Act of 1983. Makes a technical change in a Section concerning franchise taxes payable by domestic corporations.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-02-03 - Referred to Assignments [SB0127 Detail]

Download: Illinois-2021-SB0127-Introduced.html

---

102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB0127 Introduced 2/3/2021, by Sen. Emil Jones, III SYNOPSIS AS INTRODUCED:
805 ILCS 5/15.35 from Ch. 32, par. 15.35
Amends the Business Corporation Act of 1983. Makes a technical change in a Section concerning franchise taxes payable by domestic corporations.
LRB102 13986 JLS 19338 b
A BILL FOR
SB0127 LRB102 13986 JLS 19338 b
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Business Corporation Act of 1983 is amended
by changing Section 15.35 as follows:
(805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
(Section scheduled to be repealed on December 31, 2025)
Sec. 15.35. Franchise taxes payable by domestic
corporations. For the the privilege of exercising its
franchises in this State, each domestic corporation shall pay
to the Secretary of State the following franchise taxes,
computed on the basis, at the rates and for the periods
prescribed in this Act:
(a) An initial franchise tax at the time of filing its
first report of issuance of shares.
(b) An additional franchise tax at the time of filing
(1) a report of the issuance of additional shares, or (2) a
report of an increase in paid-in capital without the
issuance of shares, or (3) an amendment to the articles of
incorporation or a report of cumulative changes in paid-in
capital, whenever any amendment or such report discloses
an increase in its paid-in capital over the amount thereof
last reported in any document, other than an annual

SB0127 - 2 - LRB102 13986 JLS 19338 b
report, interim annual report or final transition annual
report required by this Act to be filed in the office of
the Secretary of State.
(c) An additional franchise tax at the time of filing
a report of paid-in capital following a statutory merger
or consolidation, which discloses that the paid-in capital
of the surviving or new corporation immediately after the
merger or consolidation is greater than the sum of the
paid-in capital of all of the merged or consolidated
corporations as last reported by them in any documents,
other than annual reports, required by this Act to be
filed in the office of the Secretary of State; and in
addition, the surviving or new corporation shall be liable
for a further additional franchise tax on the paid-in
capital of each of the merged or consolidated corporations
as last reported by them in any document, other than an
annual report, required by this Act to be filed with the
Secretary of State from their taxable year end to the next
succeeding anniversary month or, in the case of a
corporation which has established an extended filing
month, the extended filing month of the surviving or new
corporation; however if the taxable year ends within the
2-month 2 month period immediately preceding the
anniversary month or, in the case of a corporation which
has established an extended filing month, the extended
filing month of the surviving or new corporation the tax

SB0127 - 3 - LRB102 13986 JLS 19338 b
will be computed to the anniversary month or, in the case
of a corporation which has established an extended filing
month, the extended filing month of the surviving or new
corporation in the next succeeding calendar year.
(d) An annual franchise tax payable each year with the
annual report which the corporation is required by this
Act to file.
(e) On or after January 1, 2020 and prior to January 1,
2021, the first $30 in liability is exempt from the tax imposed
under this Section. On or after January 1, 2021 and prior to
January 1, 2022, the first $1,000 in liability is exempt from
the tax imposed under this Section. On or after January 1, 2022
and prior to January 1, 2023, the first $10,000 in liability is
exempt from the tax imposed under this Section. On or after
January 1, 2023 and prior to January 1, 2024, the first
$100,000 in liability is exempt from the tax imposed under
this Section. The provisions of this Section shall not require
the payment of any franchise tax that would otherwise have
been due and payable on or after January 1, 2024. There shall
be no refunds or proration of franchise tax for any taxes due
and payable on or after January 1, 2024 on the basis that a
portion of the corporation's taxable year extends beyond
January 1, 2024. Public Act 101-9 This amendatory Act of the
101st General Assembly shall not affect any right accrued or
established, or any liability or penalty incurred prior to
January 1, 2024.

SB0127 - 4 - LRB102 13986 JLS 19338 b
(f) This Section is repealed on December 31, 2025.
(Source: P.A. 101-9, eff. 6-5-19; revised 7-18-19.)