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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | |||||||||||||||||||
5 | Financial Transaction Tax Act. | |||||||||||||||||||
6 | Section 3. Definitions. As used in this Act: | |||||||||||||||||||
7 | "Department" means the Department of Revenue. | |||||||||||||||||||
8 | "Financial transaction" means a transaction involving the | |||||||||||||||||||
9 | financial assets of a hedge fund where the buyer or the seller | |||||||||||||||||||
10 | is a business entity. | |||||||||||||||||||
11 | Section 5. Tax imposed; definitions. | |||||||||||||||||||
12 | (a) Beginning January 1, 2024 and until January 1, 2029, a | |||||||||||||||||||
13 | tax is imposed on the privilege of engaging in a financial | |||||||||||||||||||
14 | transaction on any of the following exchanges or boards of | |||||||||||||||||||
15 | trade: the Chicago Stock Exchange; the Chicago Mercantile | |||||||||||||||||||
16 | Exchange; the Chicago Board of Trade; or the Chicago Board | |||||||||||||||||||
17 | Options Exchange. The tax is imposed at a rate of $0.002 per | |||||||||||||||||||
18 | every $1 of value traded. The tax shall be paid by the trading | |||||||||||||||||||
19 | facility. All transactions executed via open outcry that are | |||||||||||||||||||
20 | physically filled on the exchange floor are exempt from the | |||||||||||||||||||
21 | tax. | |||||||||||||||||||
22 | (b) The tax shall be collected by the exchange or board of |
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1 | trade and shall be remitted to the Department of Revenue | ||||||
2 | biannually in the form and manner required by the Department. | ||||||
3 | The exchange or board of trade may retain 5% of the amount | ||||||
4 | collected, which is allowed to
reimburse the exchange or board | ||||||
5 | of trade for the expenses incurred in keeping records,
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6 | preparing and filing returns, remitting the tax, and supplying | ||||||
7 | data to
the Department on request. | ||||||
8 | (c) Subject to the provisions of subsection (b), the tax | ||||||
9 | imposed under this Act, and all civil penalties that may
be | ||||||
10 | assessed as an incident thereof, shall be administered, | ||||||
11 | collected, and
enforced by the Department of Revenue, and | ||||||
12 | commodity brokers shall register with the Department in the | ||||||
13 | same manner as required under the Retailers' Occupation Tax | ||||||
14 | Act insofar as may be applicable.
The Department of Revenue | ||||||
15 | has full power to administer and enforce
this Act, to collect | ||||||
16 | all taxes and penalties due under this Act, to dispose
of taxes | ||||||
17 | and penalties so collected as provided in this Act, and
to | ||||||
18 | determine all rights to credit memoranda arising on account of | ||||||
19 | the
erroneous payment of a tax or penalty under this Act. The | ||||||
20 | Department of Revenue shall pay over to the State Treasurer | ||||||
21 | all moneys remitted to the Department under this Act for | ||||||
22 | deposit into the General Revenue Fund. | ||||||
23 | Section 10. Recordkeeping. Each exchange or board of trade | ||||||
24 | that is subject to the tax under this Act shall keep records | ||||||
25 | and books of all transactions giving rise to a tax under this |
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1 | Act. Those books and records shall be kept in the English | ||||||
2 | language and shall, at all times during business hours of the | ||||||
3 | day, be subject to inspection by the Department or its duly | ||||||
4 | authorized agents and employees. | ||||||
5 | Section 15. Retailers' Occupation Tax Act and Uniform | ||||||
6 | Penalty and Interest Act adopted. The provisions of Sections | ||||||
7 | 4, 5, 5f, 5i, 6, 6a, 6b, 6c, 8, 9, 10, and 12 of the Retailers' | ||||||
8 | Occupation Tax Act which are not inconsistent with this Act, | ||||||
9 | and Section 3-7 of the Uniform Penalty and Interest Act, shall | ||||||
10 | apply as far as practicable to the subject matter of this Act | ||||||
11 | to the same extent as if those provisions were included in this | ||||||
12 | Act. | ||||||
13 | Section 20. Rules. The Department shall adopt | ||||||
14 | administrative rules to implement and administer this Act. | ||||||
15 | Initial rules may be adopted as emergency rules. | ||||||
16 | Section 25. Interstate commerce exemption. No tax is | ||||||
17 | imposed under this Act upon the privilege of engaging in a | ||||||
18 | business in interstate commerce or otherwise when the business | ||||||
19 | may not, under the Constitution and statutes of the United | ||||||
20 | States, be made the subject of taxation by this State. | ||||||
21 | Section 99. Effective date. This Act takes effect upon | ||||||
22 | becoming law. |