Bill Text: IL SB1257 | 2019-2020 | 101st General Assembly | Chaptered
Bill Title: Amends the Illinois Income Tax Act. Makes changes concerning the calculation of base income for an organization that is exempt from the federal income tax by reason of the Internal Revenue Code. Effective immediately.
Spectrum: Partisan Bill (Democrat 25-0)
Status: (Passed) 2019-08-23 - Public Act . . . . . . . . . 101-0545 [SB1257 Detail]
Download: Illinois-2019-SB1257-Chaptered.html
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| Public Act 101-0545 | ||||
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Income Tax Act is amended by | ||||
changing Section 205 as follows:
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(35 ILCS 5/205) (from Ch. 120, par. 2-205)
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Sec. 205. Exempt organizations.
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(a) Charitable, etc. organizations. For tax years | ||||
beginning before January 1, 2019, the The base income of an
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organization which is exempt from the federal income tax by | ||||
reason of the Internal Revenue Code shall not be determined
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under section 203 of this Act, but shall be its unrelated | ||||
business
taxable income as determined under section 512 of the | ||||
Internal Revenue
Code, without any deduction for the tax | ||||
imposed by this Act. The
standard exemption provided by section | ||||
204 of this Act shall not be
allowed in determining the net | ||||
income of an organization to which this
subsection applies.
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For tax years beginning on or after January 1, 2019, the | ||||
base income of an organization which is exempt from the federal | ||||
income tax by reason of the Internal Revenue Code shall not be | ||||
determined under Section 203 of this Act, but shall be its | ||||
unrelated business taxable income as determined under Section | ||||
512 of the Internal Revenue Code, without regard to Section | ||||
512(a)(7) of the Internal Revenue Code and without any | ||
deduction for the tax imposed by this Act. The standard | ||
exemption provided by Section 204 of this Act shall not be | ||
allowed in determining the net income of an organization to | ||
which this subsection applies. This exclusion is exempt from | ||
the provisions of Section 250. | ||
(b) Partnerships. A partnership as such shall not be | ||
subject to
the tax imposed by subsection 201 (a) and (b) of | ||
this Act, but shall be
subject to the replacement tax imposed | ||
by subsection 201 (c) and (d) of
this Act and shall compute its | ||
base income as described in subsection (d)
of Section 203 of | ||
this Act. For taxable years ending on or after December 31, | ||
2004, an investment partnership, as defined in Section | ||
1501(a)(11.5) of this Act, shall not be subject to the tax | ||
imposed by subsections (c) and (d) of Section 201 of this Act.
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A partnership shall file such returns and other
information at | ||
such
time and in such manner as may be required under Article 5 | ||
of this Act.
The partners in a partnership shall be liable for | ||
the replacement tax imposed
by subsection 201 (c) and (d) of | ||
this Act on such partnership, to the extent
such tax is not | ||
paid by the partnership, as provided under the laws of Illinois
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governing the liability of partners for the obligations of a | ||
partnership.
Persons carrying on business as partners shall be | ||
liable for the tax
imposed by subsection 201 (a) and (b) of | ||
this Act only in their separate
or individual capacities.
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(c) Subchapter S corporations. A Subchapter S corporation | ||
shall not
be subject to the tax imposed by subsection 201 (a) | ||
and
(b) of this Act but shall be subject to the replacement tax | ||
imposed by subsection
201 (c) and (d) of this Act and shall | ||
file such returns
and other information
at such time and in | ||
such manner as may be required under Article 5 of this Act.
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(d) Combat zone, terrorist attack, and certain other | ||
deaths. An individual relieved from the federal
income tax for | ||
any taxable year by reason of section 692 of the Internal
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Revenue Code shall not be subject to the tax imposed by this | ||
Act for
such taxable year.
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(e) Certain trusts. A common trust fund described in | ||
Section 584
of the Internal Revenue Code, and any other trust | ||
to the extent that the
grantor is treated as the owner thereof | ||
under sections 671 through 678
of the Internal Revenue Code | ||
shall not be subject to the tax imposed by
this Act.
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(f) Certain business activities. A person not otherwise | ||
subject to the tax
imposed by this Act shall not become subject | ||
to the tax imposed by this Act by
reason of:
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(1) that person's ownership of tangible personal | ||
property located at the
premises of
a printer in this State | ||
with which the person has contracted for printing, or
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(2) activities of the person's employees or agents | ||
located solely at the
premises of a printer and related to | ||
quality control, distribution, or printing
services | ||
performed by a printer in the State with which the person | ||
has
contracted for printing.
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(g) A nonprofit risk organization that holds a certificate | ||
of authority under Article VIID of the Illinois Insurance Code | ||
is exempt from the tax imposed under this Act with respect to | ||
its activities or operations in furtherance of the powers | ||
conferred upon it under that Article VIID of the Illinois | ||
Insurance Code.
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(Source: P.A. 97-507, eff. 8-23-11.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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