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Rep. Mary E. Flowers
Filed: 3/19/2013
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| 1 | | AMENDMENT TO HOUSE BILL 1554
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| 2 | | AMENDMENT NO. ______. Amend House Bill 1554 by replacing |
| 3 | | everything after the enacting clause with the following:
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| 4 | | "Section 1. Short title. This Act may be cited as the |
| 5 | | Financial Transaction Tax Act.
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| 6 | | Section 5. Tax imposed; definitions. |
| 7 | | (a) Beginning September 1, 2013, a tax is imposed on the |
| 8 | | privilege of engaging in a financial transaction that occurs or |
| 9 | | is cleared on a facility located in this State. The tax is |
| 10 | | imposed at a rate of 0.01% of the value of the transaction. The |
| 11 | | tax shall be paid by the trading facility or, in any other |
| 12 | | case, by the purchaser involved in the transaction. |
| 13 | | (b) A tax imposed under this Act, and all civil penalties |
| 14 | | that may
be assessed as an incident thereof, shall be |
| 15 | | administered, collected, and
enforced by the Illinois |
| 16 | | Department of Revenue in the same manner as required under the |
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| 1 | | Retailers' Occupation Tax Act insofar as may be applicable.
The |
| 2 | | Department of Revenue has full power to administer and enforce
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| 3 | | this Act, to collect all taxes and penalties due under this |
| 4 | | Act, to dispose
of taxes and penalties so collected as provided |
| 5 | | in this Act, and
to determine all rights to credit memoranda |
| 6 | | arising on account of the
erroneous payment of tax or penalty |
| 7 | | under this Act. The Department of Revenue shall pay over to the |
| 8 | | State Treasurer all taxes and penalties collected under this |
| 9 | | Act for deposit into the General Revenue Fund. |
| 10 | | (c) For the purposes of this Act, "financial transaction" |
| 11 | | means a transaction involving the purchase or sale of: |
| 12 | | (1) any share of stock in a corporation; |
| 13 | | (2) a "futures contract", defined as a contractual |
| 14 | | agreement to buy or sell a particular commodity or |
| 15 | | financial instrument at a pre-determined price in the |
| 16 | | future; |
| 17 | | (3) a "swap contract", defined as a contractual |
| 18 | | agreement to exchange the cash flows of one party's |
| 19 | | financial instrument for those of another party's |
| 20 | | financial instrument; |
| 21 | | (4) a "credit default swap", defined as a swap designed |
| 22 | | to transfer the credit exposure of fixed income products |
| 23 | | between parties, including credit derivative contracts, |
| 24 | | where the purchaser of the swap makes payments up until the |
| 25 | | maturity date of a contract, and the seller agrees to pay |
| 26 | | off a third party debt if the party defaults on the loan; |
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| 1 | | (5) an "options contract", defined as a contract that |
| 2 | | allows the holder to buy or sell an underlying security or |
| 3 | | other financial instrument at a given price (including, but |
| 4 | | not limited to, options on futures contracts); and |
| 5 | | (6) other "derivatives", defined as a security or |
| 6 | | financial instrument the price of which is dependent upon |
| 7 | | or derived from one or more underlying assets. |
| 8 | | For the purposes of this Act, "financial transaction" does |
| 9 | | not include a transaction involving securities held in a |
| 10 | | retirement account or a transaction involving a mutual fund. |
| 11 | | An exchange of securities of financial instruments shall be |
| 12 | | treated as a purchase of the securities or financial received |
| 13 | | by each party to the exchange.
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| 14 | | Section 10. Rules. The Department shall adopt |
| 15 | | administrative rules to implement and administer this Act. |
| 16 | | Initial rules may be adopted as emergency rules.
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| 17 | | Section 99. Effective date. This Act takes effect upon |
| 18 | | becoming law.".
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