Full Text of SB2357 99th General Assembly
SB2357 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB2357 Introduced 1/28/2016, by Sen. Dave Syverson SYNOPSIS AS INTRODUCED: |
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230 ILCS 10/13 | from Ch. 120, par. 2413 |
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Amends the Riverboat Gambling Act. Removes provisions concerning the distribution of certain funds into the Horse Racing Equity Fund.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning gaming.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Riverboat Gambling Act is amended by | 5 | | changing Section 13 as follows:
| 6 | | (230 ILCS 10/13) (from Ch. 120, par. 2413)
| 7 | | Sec. 13. Wagering tax; rate; distribution.
| 8 | | (a) Until January 1, 1998, a tax is imposed on the adjusted | 9 | | gross
receipts received from gambling games authorized under | 10 | | this Act at the rate of
20%.
| 11 | | (a-1) From January 1, 1998 until July 1, 2002, a privilege | 12 | | tax is
imposed on persons engaged in the business of conducting | 13 | | riverboat gambling
operations, based on the adjusted gross | 14 | | receipts received by a licensed owner
from gambling games | 15 | | authorized under this Act at the following rates:
| 16 | | 15% of annual adjusted gross receipts up to and | 17 | | including $25,000,000;
| 18 | | 20% of annual adjusted gross receipts in excess of | 19 | | $25,000,000 but not
exceeding $50,000,000;
| 20 | | 25% of annual adjusted gross receipts in excess of | 21 | | $50,000,000 but not
exceeding $75,000,000;
| 22 | | 30% of annual adjusted gross receipts in excess of | 23 | | $75,000,000 but not
exceeding $100,000,000;
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| 1 | | 35% of annual adjusted gross receipts in excess of | 2 | | $100,000,000.
| 3 | | (a-2) From July 1, 2002 until July 1, 2003, a privilege tax | 4 | | is imposed on
persons engaged in the business of conducting | 5 | | riverboat gambling operations,
other than licensed managers | 6 | | conducting riverboat gambling operations on behalf
of the | 7 | | State, based on the adjusted gross receipts received by a | 8 | | licensed
owner from gambling games authorized under this Act at | 9 | | the following rates:
| 10 | | 15% of annual adjusted gross receipts up to and | 11 | | including $25,000,000;
| 12 | | 22.5% of annual adjusted gross receipts in excess of | 13 | | $25,000,000 but not
exceeding $50,000,000;
| 14 | | 27.5% of annual adjusted gross receipts in excess of | 15 | | $50,000,000 but not
exceeding $75,000,000;
| 16 | | 32.5% of annual adjusted gross receipts in excess of | 17 | | $75,000,000 but not
exceeding $100,000,000;
| 18 | | 37.5% of annual adjusted gross receipts in excess of | 19 | | $100,000,000 but not
exceeding $150,000,000;
| 20 | | 45% of annual adjusted gross receipts in excess of | 21 | | $150,000,000 but not
exceeding $200,000,000;
| 22 | | 50% of annual adjusted gross receipts in excess of | 23 | | $200,000,000.
| 24 | | (a-3) Beginning July 1, 2003, a privilege tax is imposed on | 25 | | persons engaged
in the business of conducting riverboat | 26 | | gambling operations, other than
licensed managers conducting |
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| 1 | | riverboat gambling operations on behalf of the
State, based on | 2 | | the adjusted gross receipts received by a licensed owner from
| 3 | | gambling games authorized under this Act at the following | 4 | | rates:
| 5 | | 15% of annual adjusted gross receipts up to and | 6 | | including $25,000,000;
| 7 | | 27.5% of annual adjusted gross receipts in excess of | 8 | | $25,000,000 but not
exceeding $37,500,000;
| 9 | | 32.5% of annual adjusted gross receipts in excess of | 10 | | $37,500,000 but not
exceeding $50,000,000;
| 11 | | 37.5% of annual adjusted gross receipts in excess of | 12 | | $50,000,000 but not
exceeding $75,000,000;
| 13 | | 45% of annual adjusted gross receipts in excess of | 14 | | $75,000,000 but not
exceeding $100,000,000;
| 15 | | 50% of annual adjusted gross receipts in excess of | 16 | | $100,000,000 but not
exceeding $250,000,000;
| 17 | | 70% of annual adjusted gross receipts in excess of | 18 | | $250,000,000.
| 19 | | An amount equal to the amount of wagering taxes collected | 20 | | under this
subsection (a-3) that are in addition to the amount | 21 | | of wagering taxes that
would have been collected if the | 22 | | wagering tax rates under subsection (a-2)
were in effect shall | 23 | | be paid into the Common School Fund.
| 24 | | The privilege tax imposed under this subsection (a-3) shall | 25 | | no longer be
imposed beginning on the earlier of (i) July 1, | 26 | | 2005; (ii) the first date
after June 20, 2003 that riverboat |
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| 1 | | gambling operations are conducted
pursuant to a dormant | 2 | | license; or (iii) the first day that riverboat gambling
| 3 | | operations are conducted under the authority of an owners | 4 | | license that is in
addition to the 10 owners licenses initially | 5 | | authorized under this Act.
For the purposes of this subsection | 6 | | (a-3), the term "dormant license"
means an owners license that | 7 | | is authorized by this Act under which no
riverboat gambling | 8 | | operations are being conducted on June 20, 2003.
| 9 | | (a-4) Beginning on the first day on which the tax imposed | 10 | | under
subsection (a-3) is no longer imposed, a privilege tax is | 11 | | imposed on persons
engaged in the business of conducting | 12 | | riverboat gambling operations, other
than licensed managers | 13 | | conducting riverboat gambling operations on behalf of
the | 14 | | State, based on the adjusted gross receipts received by a | 15 | | licensed owner
from gambling games authorized under this Act at | 16 | | the following rates:
| 17 | | 15% of annual adjusted gross receipts up to and | 18 | | including $25,000,000;
| 19 | | 22.5% of annual adjusted gross receipts in excess of | 20 | | $25,000,000 but not
exceeding $50,000,000;
| 21 | | 27.5% of annual adjusted gross receipts in excess of | 22 | | $50,000,000 but not
exceeding $75,000,000;
| 23 | | 32.5% of annual adjusted gross receipts in excess of | 24 | | $75,000,000 but not
exceeding $100,000,000;
| 25 | | 37.5% of annual adjusted gross receipts in excess of | 26 | | $100,000,000 but not
exceeding $150,000,000;
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| 1 | | 45% of annual adjusted gross receipts in excess of | 2 | | $150,000,000 but not
exceeding $200,000,000;
| 3 | | 50% of annual adjusted gross receipts in excess of | 4 | | $200,000,000.
| 5 | | (a-8) Riverboat gambling operations conducted by a | 6 | | licensed manager on
behalf of the State are not subject to the | 7 | | tax imposed under this Section.
| 8 | | (a-10) The taxes imposed by this Section shall be paid by | 9 | | the licensed
owner to the Board not later than 5:00 o'clock | 10 | | p.m. of the day after the day
when the wagers were made.
| 11 | | (a-15) If the privilege tax imposed under subsection (a-3) | 12 | | is no longer imposed pursuant to item (i) of the last paragraph | 13 | | of subsection (a-3), then by June 15 of each year, each owners | 14 | | licensee, other than an owners licensee that admitted 1,000,000 | 15 | | persons or
fewer in calendar year 2004, must, in addition to | 16 | | the payment of all amounts otherwise due under this Section, | 17 | | pay to the Board a reconciliation payment in the amount, if | 18 | | any, by which the licensed owner's base amount exceeds the | 19 | | amount of net privilege tax paid by the licensed owner to the | 20 | | Board in the then current State fiscal year. A licensed owner's | 21 | | net privilege tax obligation due for the balance of the State | 22 | | fiscal year shall be reduced up to the total of the amount paid | 23 | | by the licensed owner in its June 15 reconciliation payment. | 24 | | The obligation imposed by this subsection (a-15) is binding on | 25 | | any person, firm, corporation, or other entity that acquires an | 26 | | ownership interest in any such owners license. The obligation |
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| 1 | | imposed under this subsection (a-15) terminates on the earliest | 2 | | of: (i) July 1, 2007, (ii) the first day after the effective | 3 | | date of this amendatory Act of the 94th General Assembly that | 4 | | riverboat gambling operations are conducted pursuant to a | 5 | | dormant license, (iii) the first day that riverboat gambling | 6 | | operations are conducted under the authority of an owners | 7 | | license that is in addition to the 10 owners licenses initially | 8 | | authorized under this Act, or (iv) the first day that a | 9 | | licensee under the Illinois Horse Racing Act of 1975 conducts | 10 | | gaming operations with slot machines or other electronic gaming | 11 | | devices. The Board must reduce the obligation imposed under | 12 | | this subsection (a-15) by an amount the Board deems reasonable | 13 | | for any of the following reasons: (A) an act or acts of God, | 14 | | (B) an act of bioterrorism or terrorism or a bioterrorism or | 15 | | terrorism threat that was investigated by a law enforcement | 16 | | agency, or (C) a condition beyond the control of the owners | 17 | | licensee that does not result from any act or omission by the | 18 | | owners licensee or any of its agents and that poses a hazardous | 19 | | threat to the health and safety of patrons. If an owners | 20 | | licensee pays an amount in excess of its liability under this | 21 | | Section, the Board shall apply the overpayment to future | 22 | | payments required under this Section. | 23 | | For purposes of this subsection (a-15): | 24 | | "Act of God" means an incident caused by the operation of | 25 | | an extraordinary force that cannot be foreseen, that cannot be | 26 | | avoided by the exercise of due care, and for which no person |
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| 1 | | can be held liable.
| 2 | | "Base amount" means the following: | 3 | | For a riverboat in Alton, $31,000,000.
| 4 | | For a riverboat in East Peoria, $43,000,000.
| 5 | | For the Empress riverboat in Joliet, $86,000,000.
| 6 | | For a riverboat in Metropolis, $45,000,000.
| 7 | | For the Harrah's riverboat in Joliet, $114,000,000.
| 8 | | For a riverboat in Aurora, $86,000,000.
| 9 | | For a riverboat in East St. Louis, $48,500,000.
| 10 | | For a riverboat in Elgin, $198,000,000.
| 11 | | "Dormant license" has the meaning ascribed to it in | 12 | | subsection (a-3).
| 13 | | "Net privilege tax" means all privilege taxes paid by a | 14 | | licensed owner to the Board under this Section, less all | 15 | | payments made from the State Gaming Fund pursuant to subsection | 16 | | (b) of this Section. | 17 | | The changes made to this subsection (a-15) by Public Act | 18 | | 94-839 are intended to restate and clarify the intent of Public | 19 | | Act 94-673 with respect to the amount of the payments required | 20 | | to be made under this subsection by an owners licensee to the | 21 | | Board.
| 22 | | (b) Until January 1, 1998, 25% of the tax revenue deposited | 23 | | in the State
Gaming Fund under this Section shall be paid, | 24 | | subject to appropriation by the
General Assembly, to the unit | 25 | | of local government which is designated as the
home dock of the | 26 | | riverboat. Beginning January 1, 1998, from the tax revenue
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| 1 | | deposited in the State Gaming Fund under this Section, an | 2 | | amount equal to 5% of
adjusted gross receipts generated by a | 3 | | riverboat shall be paid monthly, subject
to appropriation by | 4 | | the General Assembly, to the unit of local government that
is | 5 | | designated as the home dock of the riverboat. From the tax | 6 | | revenue
deposited in the State Gaming Fund pursuant to | 7 | | riverboat gambling operations
conducted by a licensed manager | 8 | | on behalf of the State, an amount equal to 5%
of adjusted gross | 9 | | receipts generated pursuant to those riverboat gambling
| 10 | | operations shall be paid monthly,
subject to appropriation by | 11 | | the General Assembly, to the unit of local
government that is | 12 | | designated as the home dock of the riverboat upon which
those | 13 | | riverboat gambling operations are conducted.
| 14 | | (c) Appropriations, as approved by the General Assembly, | 15 | | may be made
from the State Gaming Fund to the Board (i) for the | 16 | | administration and enforcement of this Act and the Video Gaming | 17 | | Act, (ii) for distribution to the Department of State Police | 18 | | and to the Department of Revenue for the enforcement of this | 19 | | Act, and (iii) to the
Department of Human Services for the | 20 | | administration of programs to treat
problem gambling.
| 21 | | (c-5) (Blank). Before May 26, 2006 (the effective date of | 22 | | Public Act 94-804) and beginning on the effective date of this | 23 | | amendatory Act of the 95th General Assembly, unless any | 24 | | organization licensee under the Illinois Horse Racing Act of | 25 | | 1975 begins to operate a slot machine or video game of chance | 26 | | under the Illinois Horse Racing Act of 1975 or this Act, after |
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| 1 | | the payments required under subsections (b) and (c) have been
| 2 | | made, an amount equal to 15% of the adjusted gross receipts of | 3 | | (1) an owners
licensee that relocates pursuant to Section 11.2,
| 4 | | (2) an owners licensee
conducting riverboat gambling | 5 | | operations
pursuant to an
owners license that is initially | 6 | | issued after June
25, 1999,
or (3) the first
riverboat gambling | 7 | | operations conducted by a licensed manager on behalf of the
| 8 | | State under Section 7.3,
whichever comes first, shall be paid | 9 | | from the State
Gaming Fund into the Horse Racing Equity Fund.
| 10 | | (c-10) (Blank). Each year the General Assembly shall | 11 | | appropriate from the General
Revenue Fund to the Education | 12 | | Assistance Fund an amount equal to the amount
paid into the | 13 | | Horse Racing Equity Fund pursuant to subsection (c-5) in the
| 14 | | prior calendar year.
| 15 | | (c-15) After the payments required under subsections (b) | 16 | | and , (c) , and (c-5)
have been made, an amount equal to 2% of | 17 | | the adjusted gross receipts of (1)
an owners licensee that | 18 | | relocates pursuant to Section 11.2, (2) an owners
licensee | 19 | | conducting riverboat gambling operations pursuant to
an
owners | 20 | | license that is initially issued after June 25, 1999,
or (3) | 21 | | the first
riverboat gambling operations conducted by a licensed | 22 | | manager on behalf of the
State under Section 7.3,
whichever | 23 | | comes first, shall be paid, subject to appropriation
from the | 24 | | General Assembly, from the State Gaming Fund to each home rule
| 25 | | county with a population of over 3,000,000 inhabitants for the | 26 | | purpose of
enhancing the county's criminal justice system.
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| 1 | | (c-20) Each year the General Assembly shall appropriate | 2 | | from the General
Revenue Fund to the Education Assistance Fund | 3 | | an amount equal to the amount
paid to each home rule county | 4 | | with a population of over 3,000,000 inhabitants
pursuant to | 5 | | subsection (c-15) in the prior calendar year.
| 6 | | (c-25) On July 1, 2013 and each July 1 thereafter, | 7 | | $1,600,000 shall be transferred from the State Gaming Fund to | 8 | | the Chicago State University Education Improvement Fund.
| 9 | | (c-30) On July 1, 2013 or as soon as possible thereafter, | 10 | | $92,000,000 shall be transferred from the State Gaming Fund to | 11 | | the School Infrastructure Fund and $23,000,000 shall be | 12 | | transferred from the State Gaming Fund to the Horse Racing | 13 | | Equity Fund. | 14 | | (c-35) Beginning on July 1, 2013, in addition to any amount | 15 | | transferred under subsection (c-30) of this Section, | 16 | | $5,530,000 shall be transferred monthly from the State Gaming | 17 | | Fund to the School Infrastructure Fund. | 18 | | (d) From time to time, the
Board shall transfer the | 19 | | remainder of the funds
generated by this Act into the Education
| 20 | | Assistance Fund, created by Public Act 86-0018, of the State of | 21 | | Illinois.
| 22 | | (e) Nothing in this Act shall prohibit the unit of local | 23 | | government
designated as the home dock of the riverboat from | 24 | | entering into agreements
with other units of local government | 25 | | in this State or in other states to
share its portion of the | 26 | | tax revenue.
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| 1 | | (f) To the extent practicable, the Board shall administer | 2 | | and collect the
wagering taxes imposed by this Section in a | 3 | | manner consistent with the
provisions of Sections 4, 5, 5a, 5b, | 4 | | 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b,
6c, 8, 9, and 10 of the | 5 | | Retailers' Occupation Tax Act and Section 3-7 of the
Uniform | 6 | | Penalty and Interest Act.
| 7 | | (Source: P.A. 98-18, eff. 6-7-13.)
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