Bill Text: IL SB2199 | 2015-2016 | 99th General Assembly | Introduced


Bill Title: Creates the Financial Transaction Tax Act. Beginning January 1, 2016, 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, and the Chicago Board Options Exchange. Provides that the tax is imposed at a rate of $1 per contract for all transactions for which the underlying asset is an agricultural product and $2 per contract for all other transactions. Provides that the term "financial transaction" means a transaction involving the purchase or sale of a stock contract, futures contract, futures option 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 immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2016-05-13 - Rule 3-9(a) / Re-referred to Assignments [SB2199 Detail]

Download: Illinois-2015-SB2199-Introduced.html


99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2199

Introduced 12/4/2015, by Sen. Michael Noland

SYNOPSIS AS INTRODUCED:
New Act

Creates the Financial Transaction Tax Act. Beginning January 1, 2016, 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, and the Chicago Board Options Exchange. Provides that the tax is imposed at a rate of $1 per contract for all transactions for which the underlying asset is an agricultural product and $2 per contract for all other transactions. Provides that the term "financial transaction" means a transaction involving the purchase or sale of a stock contract, futures contract, futures option 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 immediately.
LRB099 14962 HLH 39152 b
FISCAL NOTE ACT MAY APPLY

A BILL FOR

SB2199LRB099 14962 HLH 39152 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5Financial Transaction Tax Act.
6 Section 5. Tax imposed; definitions.
7 (a) Beginning January 1, 2016, a tax is imposed on the
8privilege of engaging in a financial transaction on any of the
9following exchanges or boards of trade: the Chicago Stock
10Exchange, the Chicago Mercantile Exchange, the Chicago Board of
11Trade, and the Chicago Board Options Exchange. The tax is
12imposed at a rate of $1 per contract for all transactions for
13which the underlying asset is an agricultural product and $2
14per contract for all other transactions. The tax shall be paid
15by the trading facility or, in any other case, by the purchaser
16involved in the transaction.
17 (b) A tax imposed under this Act, and all civil penalties
18that may be assessed as an incident thereof, shall be
19administered, collected, and enforced by the Illinois
20Department of Revenue, and commodity brokers shall register
21with the Department, in the same manner as required under the
22Retailers' Occupation Tax Act insofar as may be applicable. The
23Department of Revenue has full power to administer and enforce

SB2199- 2 -LRB099 14962 HLH 39152 b
1this Act, to collect all taxes and penalties due under this
2Act, to dispose of taxes and penalties so collected as provided
3in this Act, and to determine all rights to credit memoranda
4arising on account of the erroneous payment of tax or penalty
5under this Act. The Department of Revenue shall pay over to the
6State Treasurer all taxes and penalties collected under this
7Act for deposit into the Education Assistance Fund.
8 For the purpose of this Act, "financial transaction" means
9a transaction involving the purchase or sale of a stock
10contract, futures contract, futures option contract, swap
11contract, credit default swap contract, or options contract,
12but does not include a transaction involving securities held in
13a retirement account or a transaction involving a mutual fund.
14 Section 10. Rules. The Department shall adopt
15administrative rules to implement and administer this Act.
16Initial rules may be adopted as emergency rules.
17 Section 15. Interstate commerce exemption. No tax is
18imposed under this Act upon the privilege of engaging in a
19business in interstate commerce or otherwise when the business
20may not, under the Constitution and statutes of the United
21States, be made the subject of taxation by this State.
22 Section 99. Effective date. This Act takes effect upon
23becoming law.
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