Illinois General Assembly - Full Text of Public Act 097-0709
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Public Act 097-0709


 

Public Act 0709 97TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 097-0709
 
SB3507 EnrolledLRB097 17991 HLH 63214 b

    AN ACT concerning revenue.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Income Tax Act is amended by
changing Section 303 as follows:
 
    (35 ILCS 5/303)  (from Ch. 120, par. 3-303)
    Sec. 303. (a) In general. Any item of capital gain or loss,
and any item of income from rents or royalties from real or
tangible personal property, interest, dividends, and patent or
copyright royalties, and prizes awarded under the Illinois
Lottery Law, to the extent such item constitutes nonbusiness
income, together with any item of deduction directly allocable
thereto, shall be allocated by any person other than a resident
as provided in this Section.
    (b) Capital gains and losses. (1) Real property. Capital
gains and losses from sales or exchanges of real property are
allocable to this State if the property is located in this
State.
    (2) Tangible personal property. Capital gains and losses
from sales or exchanges of tangible personal property are
allocable to this State if, at the time of such sale or
exchange:
    (A) The property had its situs in this State; or
    (B) The taxpayer had its commercial domicile in this State
and was not taxable in the state in which the property had its
situs.
    (3) Intangibles. Capital gains and losses from sales or
exchanges of intangible personal property are allocable to this
State if the taxpayer had its commercial domicile in this State
at the time of such sale or exchange.
    (c) Rents and royalties. (1) Real property. Rents and
royalties from real property are allocable to this State if the
property is located in this State.
    (2) Tangible personal property. Rents and royalties from
tangible personal property are allocable to this State:
    (A) If and to the extent that the property is utilized in
this State; or
    (B) In their entirety if, at the time such rents or
royalties were paid or accrued, the taxpayer had its commercial
domicile in this State and was not organized under the laws of
or taxable with respect to such rents or royalties in the state
in which the property was utilized. The extent of utilization
of tangible personal property in a state is determined by
multiplying the rents or royalties derived from such property
by a fraction, the numerator of which is the number of days of
physical location of the property in the state during the
rental or royalty period in the taxable year and the
denominator of which is the number of days of physical location
of the property everywhere during all rental or royalty periods
in the taxable year. If the physical location of the property
during the rental or royalty period is unknown or
unascertainable by the taxpayer, tangible personal property is
utilized in the state in which the property was located at the
time the rental or royalty payer obtained possession.
    (d) Patent and copyright royalties.
    (1) Allocation. Patent and copyright royalties are
allocable to this State:
    (A) If and to the extent that the patent or copyright is
utilized by the payer in this State; or
    (B) If and to the extent that the patent or copyright is
utilized by the payer in a state in which the taxpayer is not
taxable with respect to such royalties and, at the time such
royalties were paid or accrued, the taxpayer had its commercial
domicile in this State.
    (2) Utilization.
    (A) A patent is utilized in a state to the extent that it
is employed in production, fabrication, manufacturing or other
processing in the state or to the extent that a patented
product is produced in the state. If the basis of receipts from
patent royalties does not permit allocation to states or if the
accounting procedures do not reflect states of utilization, the
patent is utilized in this State if the taxpayer has its
commercial domicile in this State.
    (B) A copyright is utilized in a state to the extent that
printing or other publication originates in the state. If the
basis of receipts from copyright royalties does not permit
allocation to states or if the accounting procedures do not
reflect states of utilization, the copyright is utilized in
this State if the taxpayer has its commercial domicile in this
State.
    (e) Illinois lottery prizes. Prizes awarded under the
"Illinois Lottery Law", approved December 14, 1973, are
allocable to this State.
    (e-5) Unemployment benefits. Unemployment benefits paid by
the Illinois Department of Employment Security are allocable to
this State.
    (f) Taxability in other state. For purposes of allocation
of income pursuant to this Section, a taxpayer is taxable in
another state if:
    (1) In that state he is subject to a net income tax, a
franchise tax measured by net income, a franchise tax for the
privilege of doing business, or a corporate stock tax; or
    (2) That state has jurisdiction to subject the taxpayer to
a net income tax regardless of whether, in fact, the state does
or does not.
    (g) Cross references. (1) For allocation of interest and
dividends by persons other than residents, see Section
301(c)(2).
    (2) For allocation of nonbusiness income by residents, see
Section 301(a).
(Source: P.A. 79-743.)
 
    Section 99. Effective date. This Act takes effect July 1,
2012.

Effective Date: 7/1/2012