103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2351

 

Introduced 2/10/2023, by Sen. Rachel Ventura

 

SYNOPSIS AS INTRODUCED:
 
New Act
5 ILCS 100/5-45.35 new

    Creates the Financial Transaction Tax Act. Beginning January 1, 2024, 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, or the Chicago Board Options Exchange. Provides that the tax is imposed at a rate of $1 per transaction for all transactions for which the underlying asset is an agricultural product, a financial instruments contract, or an options contract. Provides that transactions executed via open outcry that are physically filled on the exchange floor are exempt from the tax. 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 January 1, 2024.


LRB103 28233 DTM 54612 b

 

 

A BILL FOR

 

SB2351LRB103 28233 DTM 54612 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 3. Definitions. As used in this Act:
7    "Department" means the Department of Revenue.
8    "Financial transaction" means a transaction involving the
9purchase or sale of a stock contract, futures contract,
10futures options contract, swap contract, credit default swap
11contract, or options contract, but does not include a
12transaction involving securities held in a retirement account
13or a transaction involving a mutual fund.
 
14    Section 5. Tax imposed; definitions.
15    (a) Beginning January 1, 2024, a tax is imposed on the
16privilege of engaging in a financial transaction on any of the
17following exchanges or boards of trade: the Chicago Stock
18Exchange; the Chicago Mercantile Exchange; the Chicago Board
19of Trade; or the Chicago Board Options Exchange. The tax is
20imposed at a rate of $1 for each transaction for which the
21underlying asset is an agricultural product, a financial
22instruments contract, or an options contract. The tax shall be

 

 

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1paid by the trading facility or, in any other case, by the
2purchaser involved in the transaction. All transactions
3executed via open outcry that are physically filled on the
4exchange floor are exempt from the tax.
5    (b) The tax shall be collected by the exchange or board of
6trade and shall be remitted to the Department of Revenue
7biannually in the form and manner required by the Department.
8The exchange or board of trade may retain 5% of the amount
9collected, which is allowed to reimburse the exchange or board
10of trade for the expenses incurred in keeping records,
11preparing and filing returns, remitting the tax, and supplying
12data to the Department on request.
13    (c) Subject to the provisions of subsection (b), the tax
14imposed under this Act, and all civil penalties that may be
15assessed as an incident thereof, shall be administered,
16collected, and enforced by the Department of Revenue, and
17commodity brokers shall register with the Department in the
18same manner as required under the Retailers' Occupation Tax
19Act insofar as may be applicable. The Department of Revenue
20has full power to administer and enforce this Act, to collect
21all taxes and penalties due under this Act, to dispose of taxes
22and penalties so collected as provided in this Act, and to
23determine all rights to credit memoranda arising on account of
24the erroneous payment of a tax or penalty under this Act. The
25Department of Revenue shall pay over to the State Treasurer
26all moneys remitted to the Department under this Act for

 

 

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1deposit into the General Revenue Fund.
 
2    Section 10. Recordkeeping. Each exchange or board of trade
3that is subject to the tax under this Act shall keep records
4and books of all transactions giving rise to a tax under this
5Act. Those books and records shall be kept in the English
6language and shall, at all times during business hours of the
7day, be subject to inspection by the Department or its duly
8authorized agents and employees.
 
9    Section 15. Retailers' Occupation Tax Act and Uniform
10Penalty and Interest Act adopted. The provisions of Sections
114, 5, 5f, 5i, 6, 6a, 6b, 6c, 8, 9, 10, and 12 of the Retailers'
12Occupation Tax Act which are not inconsistent with this Act,
13and Section 3-7 of the Uniform Penalty and Interest Act, shall
14apply as far as practicable to the subject matter of this Act
15to the same extent as if those provisions were included in this
16Act.
 
17    Section 20. Rules. The Department shall adopt
18administrative rules to implement and administer this Act.
19Initial rules may be adopted as emergency rules.
 
20    Section 25. Interstate commerce exemption. No tax is
21imposed under this Act upon the privilege of engaging in a
22business in interstate commerce or otherwise when the business

 

 

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1may not, under the Constitution and statutes of the United
2States, be made the subject of taxation by this State.
 
3    Section 900. The Illinois Administrative Procedure Act is
4amended by adding Section 5-45.35 as follows:
 
5    (5 ILCS 100/5-45.35 new)
6    Sec. 5-45.35. Emergency rulemaking.To provide for the
7expeditious and timely implementation of the Financial
8Transaction Tax Act, emergency rules implementing the
9Financial Transaction Tax Act may be adopted in accordance
10with Section 5-45 by the Department of Revenue. The adoption
11of emergency rules authorized by Section 5-45 and this Section
12is deemed to be necessary for the public interest,safety, and
13welfare. This Section is repealed one year after the effective
14date of this amendatory Act of the 103rd General Assembly.
 
15    Section 999. Effective date. This Act takes effect January
161, 2024.