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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 | Facilitating Business Rapid Response to State Declared | ||||||||||||||||||||||||
6 | Disasters Act of 2014. | ||||||||||||||||||||||||
7 | Section 5. Findings. With respect to emergency aid coming | ||||||||||||||||||||||||
8 | from out of State, the General Assembly finds that: | ||||||||||||||||||||||||
9 | (1) During times of storm, tornado, flood, fire, | ||||||||||||||||||||||||
10 | earthquake, or other disaster or emergency, many | ||||||||||||||||||||||||
11 | businesses bring in resources and personnel from other | ||||||||||||||||||||||||
12 | States on a temporary basis to expedite the often enormous | ||||||||||||||||||||||||
13 | and overwhelming tasks of cleaning up, restoring and | ||||||||||||||||||||||||
14 | repairing damaged buildings, equipment, and property, and | ||||||||||||||||||||||||
15 | deploying or building new replacement facilities in the | ||||||||||||||||||||||||
16 | State. | ||||||||||||||||||||||||
17 | (2) This work may involve the need for out-of-State | ||||||||||||||||||||||||
18 | businesses, including out-of-State affiliates of | ||||||||||||||||||||||||
19 | businesses based in the State, to bring in resources, | ||||||||||||||||||||||||
20 | property, and personnel that previously had no connection | ||||||||||||||||||||||||
21 | to the State to perform disaster relief and recovery | ||||||||||||||||||||||||
22 | activities in the State for extended periods of time. | ||||||||||||||||||||||||
23 | (3) During such time of operating in the State on a |
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1 | temporary basis solely for the purpose of helping the State | ||||||
2 | recover from the disaster or emergency, these businesses | ||||||
3 | and individual employees should not be burdened by any | ||||||
4 | State or local taxes. | ||||||
5 | (4) The State's nexus and residency thresholds are | ||||||
6 | intended to apply to businesses and individuals that | ||||||
7 | conduct regular business operations or intend to reside in | ||||||
8 | the State and should not be directed at businesses and | ||||||
9 | individuals coming into the State on a temporary basis to | ||||||
10 | provide help and assistance in response to a declared | ||||||
11 | disaster or emergency. | ||||||
12 | (5) To ensure that businesses may focus on quick | ||||||
13 | response to the needs of the State and its citizens during | ||||||
14 | a declared disaster or emergency, it is appropriate for the | ||||||
15 | General Assembly to deem that such activity for a | ||||||
16 | reasonable period of time before, during and after the | ||||||
17 | disaster or emergency for repairing and restoration of the | ||||||
18 | often devastating damage to property and infrastructure in | ||||||
19 | the State shall not establish presence, residency, nor | ||||||
20 | doing business in the State nor any other criteria for | ||||||
21 | purposes of State and local taxes, licensing and regulatory | ||||||
22 | requirements. | ||||||
23 | Section 10. Definitions. In this Act: | ||||||
24 | "Registered business in the State" (or "registered | ||||||
25 | business") means a business entity that is currently registered |
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1 | to do business in the State prior to a declared State disaster | ||||||
2 | or emergency. | ||||||
3 | "Out-of-State business" means a business entity that (i) | ||||||
4 | has no presence in the State and conducts no business in the | ||||||
5 | State, whose services are requested by a registered business or | ||||||
6 | by a State or local government for purposes of performing | ||||||
7 | disaster or emergency related work in the State and (ii) has no | ||||||
8 | registrations or tax filings or nexus in the State prior to a | ||||||
9 | declared State disaster or emergency. This shall also include a | ||||||
10 | business entity that is affiliated with the registered business | ||||||
11 | in the State solely through common ownership. | ||||||
12 | "Out-of-State employee" means an employee who does not work | ||||||
13 | in the State, except for disaster or emergency related work | ||||||
14 | during the disaster period. | ||||||
15 | "Infrastructure" means property and equipment owned or | ||||||
16 | used by communications networks, cable, video broadband, data | ||||||
17 | and Voice Over Internet Protocol networks, electric | ||||||
18 | generation, transmission and distribution systems, gas | ||||||
19 | distribution systems, water pipelines, and public roads and | ||||||
20 | bridges and related support facilities that service multiple | ||||||
21 | customers, including, but not limited to, real and personal | ||||||
22 | property such as buildings, offices, lines, poles, pipes, | ||||||
23 | structures, and equipment. | ||||||
24 | "Declared State disaster or emergency" means a disaster or | ||||||
25 | emergency event (1) for which a Governor's proclamation of a | ||||||
26 | State of emergency has been issued or (2) for which a |
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1 | Presidential declaration of a federal major disaster or | ||||||
2 | emergency has been issued. | ||||||
3 | "Disaster period" means a period that begins within 10 days | ||||||
4 | of the first day of the Governor's proclamation or the | ||||||
5 | President's declaration and that extends for a period of 60 | ||||||
6 | calendar days after the end of the declared disaster or | ||||||
7 | emergency period. | ||||||
8 | "Disaster or emergency related work" means repairing, | ||||||
9 | renovating, installing, building, rendering services or other | ||||||
10 | business activities that relate to infrastructure that has been | ||||||
11 | damaged impaired or destroyed by the declared State disaster or | ||||||
12 | emergency. | ||||||
13 | Section 15. Obligations during and after disaster period. | ||||||
14 | (a) An out-of-State business that conducts operations | ||||||
15 | within the State solely for the purpose of performing work or | ||||||
16 | services related to a declared State disaster or emergency | ||||||
17 | during the disaster period shall not be considered to have | ||||||
18 | established a level of presence that would require that | ||||||
19 | business to register, file, or remit State or local taxes, or | ||||||
20 | that would require that business or its out-of-State employees | ||||||
21 | to be subject to any State licensing or registration | ||||||
22 | requirements; provided that, in the case of an employee who is | ||||||
23 | required to have a professional license to perform the disaster | ||||||
24 | relief or recovery work, that employee is required to maintain | ||||||
25 | a current license in his or her home state or another state |
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1 | during the disaster period. Out-of-State businesses and | ||||||
2 | employees are exempt from the following: State unemployment | ||||||
3 | insurance requirements, State or local occupational licensing | ||||||
4 | fees, use or occupation taxes imposed on the sale or use of | ||||||
5 | tangible personal property used for the purpose of disaster or | ||||||
6 | emergency related work during the disaster period, and Illinois | ||||||
7 | Commerce Commission or Secretary of State licensing and | ||||||
8 | regulatory requirements. Income derived solely from disaster | ||||||
9 | or emergency related work performed by out-of-State businesses | ||||||
10 | or employees during the disaster period shall not be allocated | ||||||
11 | or apportioned to this State for the purposes of the taxes | ||||||
12 | imposed under the Illinois Income Tax Act, including the | ||||||
13 | employer's obligation to pay over withholding taxes. | ||||||
14 | (b) Out-of-State businesses and employees are required to | ||||||
15 | pay taxes and fees, including use and occupation taxes, motor | ||||||
16 | fuel taxes, hotel taxes, and automobile rental taxes, to the | ||||||
17 | extent that the use or purchase is for personal use and not | ||||||
18 | solely for the purpose of disaster or emergency related work | ||||||
19 | during the disaster period. | ||||||
20 | (c) Any out-of-State business or out-of-State employee | ||||||
21 | that remains in the State after the disaster period will become | ||||||
22 | subject to the State's normal standards for establishing | ||||||
23 | presence, residency or doing business in the State and will | ||||||
24 | therefore become responsible for any business or employee tax | ||||||
25 | requirements that ensue. |
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1 | Section 20. Administration, notification, and reporting. | ||||||
2 | (a) An out-of-State business that enters the State shall, | ||||||
3 | upon request, provide to the Office of the Governor, the | ||||||
4 | Department of Revenue, and the Department of Employment | ||||||
5 | Security a statement that it is in the State solely for the | ||||||
6 | purpose of responding to the disaster or emergency, which | ||||||
7 | statement shall include the business name, state of domicile, | ||||||
8 | principal business address, federal tax identification number, | ||||||
9 | date of entry, and contact information. | ||||||
10 | (b) A registered business in the State shall, upon request, | ||||||
11 | provide the information required in paragraph (a) of this | ||||||
12 | Section for any affiliate that enters the State that is an | ||||||
13 | out-of-State business. The notification shall also include | ||||||
14 | contact information for the registered business in the State. | ||||||
15 | (c) An out-of-State business or an out-of-State employee | ||||||
16 | that remains in the State after the disaster period shall | ||||||
17 | complete State and local registration, licensing and filing | ||||||
18 | requirements that ensue as a result of establishing the | ||||||
19 | requisite business presence or residency in the State | ||||||
20 | applicable under the existing law. | ||||||
21 | (d) The Department of Revenue shall promulgate necessary | ||||||
22 | regulations, develop and issue forms or online processes, and | ||||||
23 | maintain and make available an annual record of any | ||||||
24 | designations pursuant to this Act to carry out these | ||||||
25 | administrative procedures. | ||||||
26 | Section 99. Effective date. This Act takes effect upon |
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1 | becoming law.
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