805 ILCS 5/15.70
2021 Illinois Compiled Statutes|Chapter 805 - BUSINESS ORGANIZATIONS|805 ILCS 5/ - Business Corporation Act of 1983.|Article 15 - Fees, Franchise Taxes And Charges

 (from Ch. 32, par. 15.70)Sec. 15.70.         Basis for computation of franchise taxes payable by foreign  corporations.(a) The basis for the initial franchise tax payable by a foreign  corporation shall be the amount represented in this State, determined in  accordance with the provisions of this Section, of its paid-in capital as  disclosed by its application for authority to transact  business in this State.(b) The basis for an additional franchise tax payable by a corporation,  except in the case of a statutory merger, shall be the increased amount  represented in this State, determined in accordance with the provisions  of this Section, of its paid-in capital as disclosed by any report of  issuance of additional shares, or of an increase in paid-in capital without  the issuance of shares, or of an exchange or reclassification of shares, or  of cumulative changes in paid-in capital.(c) Whenever a foreign corporation shall be a party to a statutory  merger  and shall be the surviving corporation, the basis for an additional  franchise tax shall be the increased amount represented in this State,  determined in accordance with the provisions of this Section, of the  paid-in capital of the surviving corporation immediately after the merger  over the aggregate of the amounts represented in this State of the paid-in  capital of the merged corporations; provided, however, the basis for a  further additional franchise tax payable by the surviving corporation shall  be determined in accordance with the provisions of this Section, on the  paid-in capital of each of the merged corporations from its taxable year  end to the next succeeding anniversary month or, in the case of a  corporation that has established an extended filing month, the extended  filing month of the surviving corporation; however if the taxable year ends  within the 2 month period immediately preceding the anniversary month or,  in the case of a corporation that has established an extended filing month,  the extended filing month of the surviving corporation, the tax shall be  computed to the anniversary month or, in the case of a corporation that has  established an extended filing month, the extended filing month of the  surviving corporation in the next succeeding calendar year.(d) The basis for the annual franchise tax payable by a foreign  corporation  shall be the amount represented in this State, determined in accordance  with the provisions of this Section, of its paid-in capital on the last day  of the third month preceding the anniversary month or, in the case of a  corporation that has established an extended filing month, on the last day  of the corporation's fiscal year preceding the extended filing month.(e) The amount represented in this State of the paid-in capital  of a foreign corporation shall be that proportion of its paid-in  capital that the sum of (1) the value of its property located in this  State and (2) the gross amount of business transacted by it at or from  places of business in this State bears to the sum of (1) the value of all  of its property, wherever located, and (2) the gross amount of its  business, wherever transacted, except as follows:(1) If the corporation elects in its annual report in     any year to pay its franchise tax upon its entire paid-in capital, all franchise taxes accruing against the corporation for that taxable year shall be computed accordingly until the corporation elects otherwise in an annual report for a subsequent year.(2) If the corporation fails to file its annual     report in any year within the time prescribed by this Act, the proportion of its paid-in capital represented in this State shall be deemed to be its entire paid-in capital, unless its annual report is thereafter filed and its franchise taxes are thereafter adjusted by the Secretary of State in accordance with the provisions of this Act, in which case the proportion shall likewise be adjusted to the same proportion that would have prevailed if the corporation had filed its annual report within the time prescribed by this Act.(3) In the case of a statutory merger that becomes     effective either prior to January 1, 1991 or on or prior to the last day of the third month preceding the corporation's anniversary month in 1991, the amount of the paid-in capital represented in this State of the surviving corporation immediately after the merger, until the filing of the next annual report of such corporation, shall be deemed to be that proportion of the paid-in capital of the surviving corporation that the aggregate amounts represented in this State of the sum of the paid-in capital of the merged corporations, separately determined, bore to the total of the sum of the paid-in capital of all of the merged corporations immediately prior to the merger.(f) For increases in paid-in capital that occur either prior to January  1, 1991  or on or prior to the last day of the third month preceding the  corporation's anniversary month in 1991, the proportion  represented in  this State of the paid-in capital of a foreign corporation shall be  determined from information contained in the latest annual report of the  corporation on file on the date the particular increase in paid-in capital  is shown to have been made, or, if no annual  report was on file on the date of the increase, from information contained  in its application for authority to transact business in  this State, or, in case of a merger that becomes effective either prior to  January 1, 1991 or on or prior to the last day of the third month preceding  the surviving corporation's anniversary month in 1991, from information  contained in the report of the surviving corporation of the amount of its  paid-in capital following the merger.  For changes in paid-in capital  that occur after both December 31, 1990 and the last day of such third  month, the proportion represented in this State of the paid-in capital of a  corporation shall be determined from information contained in the  latest annual report of the corporation for the taxable period in which the  particular increase in paid-in capital is shown to have been made or, if  no annual report was on file on the date of the increase, from information  contained in its application for authority to transact  business in Illinois.(g) No basis under this Section may consist of any redeemable preference  shares sold to the United States Secretary of Transportation under Sections  505 and 506 of Public Law 94-210.    (Source: P.A. 91-464, eff. 1-1-00; 92-33, eff. 7-1-01.)