| |||||||
| |||||||
| |||||||
| 1 | AN ACT concerning revenue.
| ||||||
| 2 | Be it enacted by the People of the State of Illinois,
| ||||||
| 3 | represented in the General Assembly:
| ||||||
| 4 | Section 5. The Illinois Income Tax Act is amended by | ||||||
| 5 | changing Section 205 as follows:
| ||||||
| 6 | (35 ILCS 5/205) (from Ch. 120, par. 2-205)
| ||||||
| 7 | Sec. 205. Exempt organizations.
| ||||||
| 8 | (a) Charitable, etc. organizations. For tax years | ||||||
| 9 | beginning before January 1, 2019, the The base income of an
| ||||||
| 10 | organization which is exempt from the federal income tax by | ||||||
| 11 | reason of the Internal Revenue Code shall not be determined
| ||||||
| 12 | under section 203 of this Act, but shall be its unrelated | ||||||
| 13 | business
taxable income as determined under section 512 of the | ||||||
| 14 | Internal Revenue
Code, without any deduction for the tax | ||||||
| 15 | imposed by this Act. The
standard exemption provided by section | ||||||
| 16 | 204 of this Act shall not be
allowed in determining the net | ||||||
| 17 | income of an organization to which this
subsection applies.
| ||||||
| 18 | For tax years beginning on or after January 1, 2019, the | ||||||
| 19 | base income of an organization which is exempt from the federal | ||||||
| 20 | income tax by reason of the Internal Revenue Code shall not be | ||||||
| 21 | determined under Section 203 of this Act, but shall be its | ||||||
| 22 | unrelated business taxable income as determined under Section | ||||||
| 23 | 512 of the Internal Revenue Code, without regard to Section | ||||||
| |||||||
| |||||||
| 1 | 512(a)(7) of the Internal Revenue Code and without any | ||||||
| 2 | deduction for the tax imposed by this Act. The standard | ||||||
| 3 | exemption provided by Section 204 of this Act shall not be | ||||||
| 4 | allowed in determining the net income of an organization to | ||||||
| 5 | which this subsection applies. This exclusion is exempt from | ||||||
| 6 | the provisions of Section 250. | ||||||
| 7 | (b) Partnerships. A partnership as such shall not be | ||||||
| 8 | subject to
the tax imposed by subsection 201 (a) and (b) of | ||||||
| 9 | this Act, but shall be
subject to the replacement tax imposed | ||||||
| 10 | by subsection 201 (c) and (d) of
this Act and shall compute its | ||||||
| 11 | base income as described in subsection (d)
of Section 203 of | ||||||
| 12 | this Act. For taxable years ending on or after December 31, | ||||||
| 13 | 2004, an investment partnership, as defined in Section | ||||||
| 14 | 1501(a)(11.5) of this Act, shall not be subject to the tax | ||||||
| 15 | imposed by subsections (c) and (d) of Section 201 of this Act.
| ||||||
| 16 | A partnership shall file such returns and other
information at | ||||||
| 17 | such
time and in such manner as may be required under Article 5 | ||||||
| 18 | of this Act.
The partners in a partnership shall be liable for | ||||||
| 19 | the replacement tax imposed
by subsection 201 (c) and (d) of | ||||||
| 20 | this Act on such partnership, to the extent
such tax is not | ||||||
| 21 | paid by the partnership, as provided under the laws of Illinois
| ||||||
| 22 | governing the liability of partners for the obligations of a | ||||||
| 23 | partnership.
Persons carrying on business as partners shall be | ||||||
| 24 | liable for the tax
imposed by subsection 201 (a) and (b) of | ||||||
| 25 | this Act only in their separate
or individual capacities.
| ||||||
| 26 | (c) Subchapter S corporations. A Subchapter S corporation | ||||||
| |||||||
| |||||||
| 1 | shall not
be subject to the tax imposed by subsection 201 (a) | ||||||
| 2 | and
(b) of this Act but shall be subject to the replacement tax | ||||||
| 3 | imposed by subsection
201 (c) and (d) of this Act and shall | ||||||
| 4 | file such returns
and other information
at such time and in | ||||||
| 5 | such manner as may be required under Article 5 of this Act.
| ||||||
| 6 | (d) Combat zone, terrorist attack, and certain other | ||||||
| 7 | deaths. An individual relieved from the federal
income tax for | ||||||
| 8 | any taxable year by reason of section 692 of the Internal
| ||||||
| 9 | Revenue Code shall not be subject to the tax imposed by this | ||||||
| 10 | Act for
such taxable year.
| ||||||
| 11 | (e) Certain trusts. A common trust fund described in | ||||||
| 12 | Section 584
of the Internal Revenue Code, and any other trust | ||||||
| 13 | to the extent that the
grantor is treated as the owner thereof | ||||||
| 14 | under sections 671 through 678
of the Internal Revenue Code | ||||||
| 15 | shall not be subject to the tax imposed by
this Act.
| ||||||
| 16 | (f) Certain business activities. A person not otherwise | ||||||
| 17 | subject to the tax
imposed by this Act shall not become subject | ||||||
| 18 | to the tax imposed by this Act by
reason of:
| ||||||
| 19 | (1) that person's ownership of tangible personal | ||||||
| 20 | property located at the
premises of
a printer in this State | ||||||
| 21 | with which the person has contracted for printing, or
| ||||||
| 22 | (2) activities of the person's employees or agents | ||||||
| 23 | located solely at the
premises of a printer and related to | ||||||
| 24 | quality control, distribution, or printing
services | ||||||
| 25 | performed by a printer in the State with which the person | ||||||
| 26 | has
contracted for printing.
| ||||||
| |||||||
| |||||||
| 1 | (g) A nonprofit risk organization that holds a certificate | ||||||
| 2 | of authority under Article VIID of the Illinois Insurance Code | ||||||
| 3 | is exempt from the tax imposed under this Act with respect to | ||||||
| 4 | its activities or operations in furtherance of the powers | ||||||
| 5 | conferred upon it under that Article VIID of the Illinois | ||||||
| 6 | Insurance Code.
| ||||||
| 7 | (Source: P.A. 97-507, eff. 8-23-11.)
| ||||||
| 8 | Section 99. Effective date. This Act takes effect upon | ||||||
| 9 | becoming law.
| ||||||