Bill Status of HB3393  100th General Assembly

Short Description:  INC TAX-INVESTMENT MANAGEMENT

House Sponsors
Rep. Emanuel Chris Welch - Sonya M. Harper - Theresa Mah - Litesa E. Wallace - Silvana Tabares, William Davis, Elizabeth Hernandez, André Thapedi, La Shawn K. Ford, Carol Ammons, Marcus C. Evans, Jr., Robert Rita, Michael Halpin, Will Guzzardi, Justin Slaughter, Arthur Turner, Jaime M. Andrade, Jr., Kelly M. Cassidy, Christian L. Mitchell, Mary E. Flowers, Gregory Harris, Camille Y. Lilly and Kathleen Willis

Last Action
DateChamber Action
  1/8/2019HouseSession Sine Die

Statutes Amended In Order of Appearance
35 ILCS 5/205from Ch. 120, par. 2-205


Synopsis As Introduced
Amends the Illinois Income Tax Act. Imposes a privilege tax at a rate of 20% on partnerships and S corporations engaged in the business of conducting investment management services, until such time as a federal law with an identical effect has been enacted. Provides for the determination of the tax due; defines "investment management services". Effective immediately.

House Committee Amendment No. 1
Provides that the privilege tax shall be imposed beginning on July 1, 2017. Provides that the tax shall be imposed at the rate of 20% of the fees earned from the investment strategy of the investment manager and not from the investment itself (in the introduced bill, at the rate of 20%).

 State Debt Impact Note, House Committee Amendment No. 1 (Government Forecasting & Accountability)
 HB 3393 (H-AM 1) would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore, would not affect the level of State indebtedness.

 Pension Note, House Committee Amendment No. 1 (Government Forecasting & Accountability)
 HB 3393 (H-AM 1) will not impact any public pension fund or retirement system in Illinois.

 Balanced Budget Note, House Committee Amendment No. 1 (Office of Management and Budget)
 This surcharge would add an undetermined increase in administrative costs to the Department of Revenue's (DOR) budget. The Department of Revenue estimates that this surcharge has the potential to raise revenues based on current activities, but due to potential impact on market behavior, DOR does not have an estimate of revenues. It is expected that the revenue would offset administrative costs.

 Fiscal Note, House Committee Amendment No. 1 (Dept. of Revenue)
 If it were determined to be constitutional, the Department of Revenue estimates that in the long­run, this bill would raise no new revenue for the State. Due to the magnitude of the tax, this bill would elicit a strong behavioral response from would-be taxpayers. Taxpayers would be strongly incentivized to either reclassify fees so as not to be considered "investment strategy" or to relocate the taxable activity so that it is beyond the reach of the State. In the unlikely event that this were to be implemented before taxpayers could respond, however, the surcharge could raise as much as $1.7 billion for a full 12 months of implementation.

 Housing Affordability Impact Note, House Committee Amendment No. 1 (Housing Development Authority)
 This bill will have no effect on the cost of constructing, purchasing, owning, or selling a single-family residence.

 Judicial Note, House Committee Amendment No. 1 (Admin Office of the Illinois Courts)
 The proposed legislation would neither increase nor decrease the number of judges needed in the State.

 Home Rule Note, House Committee Amendment No. 1 (Dept. of Commerce & Economic Opportunity)
 This bill does not pre-empt home rule authority.

Actions 
DateChamber Action
  2/9/2017HouseFiled with the Clerk by Rep. Emanuel Chris Welch
  2/10/2017HouseFirst Reading
  2/10/2017HouseReferred to Rules Committee
  2/22/2017HouseAssigned to Revenue & Finance Committee
  3/9/2017HouseTo Growth, Reform & Fairness Subcommittee
  3/14/2017HouseAdded Co-Sponsor Rep. Sonya M. Harper
  3/14/2017HouseRemoved Co-Sponsor Rep. Sonya M. Harper
  3/15/2017HouseAdded Chief Co-Sponsor Rep. Theresa Mah
  3/15/2017HouseAdded Chief Co-Sponsor Rep. Sonya M. Harper
  3/15/2017HouseChief Co-Sponsor Changed to Rep. Theresa Mah
  3/15/2017HouseAdded Chief Co-Sponsor Rep. Litesa E. Wallace
  3/15/2017HouseAdded Chief Co-Sponsor Rep. Silvana Tabares
  3/15/2017HouseAdded Co-Sponsor Rep. William Davis
  3/15/2017HouseAdded Co-Sponsor Rep. Elizabeth Hernandez
  3/15/2017HouseAdded Co-Sponsor Rep. André Thapedi
  3/15/2017HouseAdded Co-Sponsor Rep. La Shawn K. Ford
  3/16/2017HouseAdded Co-Sponsor Rep. Carol Ammons
  3/16/2017HouseAdded Co-Sponsor Rep. Marcus C. Evans, Jr.
  3/17/2017HouseAdded Co-Sponsor Rep. Robert Rita
  3/17/2017HouseAdded Co-Sponsor Rep. Michael Halpin
  3/21/2017HouseHouse Committee Amendment No. 1 Filed with Clerk by Rep. Emanuel Chris Welch
  3/21/2017HouseHouse Committee Amendment No. 1 Referred to Rules Committee
  3/22/2017HouseHouse Committee Amendment No. 1 Rules Refers to Revenue & Finance Committee
  3/23/2017HouseRecommends Do Pass Subcommittee/ Revenue & Finance Committee; 004-002-000
  3/23/2017HouseReported Back To Revenue & Finance Committee;
  3/23/2017HouseHouse Committee Amendment No. 1 Adopted in Revenue & Finance Committee; by Voice Vote
  3/23/2017HouseDo Pass as Amended / Short Debate Revenue & Finance Committee; 007-004-000
  3/23/2017HousePlaced on Calendar 2nd Reading - Short Debate
  3/23/2017HouseAdded Co-Sponsor Rep. Will Guzzardi
  3/23/2017HouseAdded Co-Sponsor Rep. Justin Slaughter
  3/23/2017HouseAdded Co-Sponsor Rep. Arthur Turner
  3/23/2017HouseAdded Co-Sponsor Rep. Jaime M. Andrade, Jr.
  3/23/2017HouseAdded Co-Sponsor Rep. Kelly M. Cassidy
  3/23/2017HouseAdded Co-Sponsor Rep. Christian L. Mitchell
  3/29/2017HouseHouse Committee Amendment No. 1 Fiscal Note Requested as Amended by Rep. David McSweeney
  3/29/2017HouseHouse Committee Amendment No. 1 State Mandates Fiscal Note Requested as Amended by Rep. David McSweeney
  3/29/2017HouseHouse Committee Amendment No. 1 Balanced Budget Note Requested as Amended by Rep. David McSweeney
  3/29/2017HouseHouse Committee Amendment No. 1 Pension Note Requested as Amended by Rep. David McSweeney
  3/29/2017HouseHouse Committee Amendment No. 1 State Debt Impact Note Requested as Amended by Rep. David McSweeney
  3/30/2017HouseHouse Committee Amendment No. 1 State Debt Impact Note Filed as Amended
  3/30/2017HouseHouse Committee Amendment No. 1 Pension Note Filed as Amended
  4/6/2017HouseHouse Committee Amendment No. 1 Balanced Budget Note Filed as Amended
  4/6/2017HouseAdded Co-Sponsor Rep. Mary E. Flowers
  4/18/2017HouseAdded Co-Sponsor Rep. Gregory Harris
  4/24/2017HouseHouse Committee Amendment No. 1 Fiscal Note Requested as Amended by Rep. David McSweeney
  4/24/2017HouseAdded Co-Sponsor Rep. Camille Y. Lilly
  4/25/2017HouseHouse Committee Amendment No. 1 Judicial Note Requested as Amended by Rep. David McSweeney
  4/25/2017HouseHouse Committee Amendment No. 1 Fiscal Note Filed as Amended
  4/26/2017HouseHouse Committee Amendment No. 1 Housing Affordability Impact Note Requested as Amended by Rep. David McSweeney
  4/26/2017HouseHouse Committee Amendment No. 1 Housing Affordability Impact Note Filed as Amended
  4/26/2017HouseHouse Committee Amendment No. 1 Judicial Note Requested as Amended - Withdrawn by Rep. David McSweeney
  4/26/2017HouseSecond Reading - Short Debate
  4/26/2017HouseHeld on Calendar Order of Second Reading - Short Debate
  4/27/2017HouseAdded Co-Sponsor Rep. Kathleen Willis
  4/27/2017HouseHouse Committee Amendment No. 1 Judicial Note Filed as Amended
  4/28/2017HouseRule 19(a) / Re-referred to Rules Committee
  5/23/2017HouseHouse Committee Amendment No. 1 Home Rule Note Filed as Amended
  1/8/2019HouseSession Sine Die