97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3548
 
Introduced 2/24/2011, by Rep. Mary E. Flowers
 
SYNOPSIS AS INTRODUCED:
 

 
New Act

     Creates the Financial Transaction Tax Act.  Beginning September 1, 2011, 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 0.01% of the value of the transaction.  Provides that the term "financial transaction" means a transaction involving the purchase or sale of a stock contract, futures 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.
  


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FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
HB3548LRB097 09806 HLH 49955 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 September 1, 2011, 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 0.01% of the value of the transaction.  The 
13tax shall be paid by the trading facility or, in any other 
14case, by the purchaser involved in the transaction.
15    (b) A tax imposed under this Act, and all civil penalties 
16that may
be assessed as an incident thereof, shall be 
17administered, collected, and
enforced by the Illinois 
18Department of Revenue, and commodity brokers shall register 
19with the Department, in the same manner as required under the 
20Retailers' Occupation Tax Act insofar as may be applicable.
The 
21Department of Revenue has full power to administer and enforce

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