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

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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

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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
SB2199 LRB099 14962 HLH 39152 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Financial Transaction Tax Act.
Section 5. Tax imposed; definitions.
(a) Beginning January 1, 2016, a tax is imposed 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. 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. The tax shall be paid
by the trading facility or, in any other case, by the purchaser
involved in the transaction.
(b) A tax imposed under this Act, and all civil penalties
that may be assessed as an incident thereof, shall be
administered, collected, and enforced by the Illinois
Department of Revenue, and commodity brokers shall register
with the Department, in the same manner as required under the
Retailers' Occupation Tax Act insofar as may be applicable. The
Department of Revenue has full power to administer and enforce

SB2199 - 2 - LRB099 14962 HLH 39152 b
this Act, to collect all taxes and penalties due under this
Act, to dispose of taxes and penalties so collected as provided
in this Act, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this Act. The Department of Revenue shall pay over to the
State Treasurer all taxes and penalties collected under this
Act for deposit into the Education Assistance Fund.
For the purpose of this Act, "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.
Section 10. Rules. The Department shall adopt
administrative rules to implement and administer this Act.
Initial rules may be adopted as emergency rules.
Section 15. Interstate commerce exemption. No tax is
imposed under this Act upon the privilege of engaging in a
business in interstate commerce or otherwise when the business
may not, under the Constitution and statutes of the United
States, be made the subject of taxation by this State.
Section 99. Effective date. This Act takes effect upon
becoming law.