805 ILCS 5/15.40
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. 15.40)Sec. 15.40.         Basis for computation of franchise taxes payable by  domestic corporations.(a) The basis for the initial franchise tax payable by a  domestic 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 first report of the issuance of shares.(b) The basis for an additional franchise tax payable by a domestic  corporation, except in the case of a statutory merger or consolidation,  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) In the case of a statutory merger or consolidation of domestic  corporations, the basis for an additional franchise tax payable by the  surviving or new corporation 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 or new corporation  immediately after the merger or consolidation over the aggregate of the  amounts represented in this State of the paid-in capital of the merged or  consolidated corporations disclosed by the latest reports filed by those  corporations, respectively, with the Secretary of State as required by this  Act; provided, however, the basis for a further additional franchise tax  payable by the surviving or new corporation shall be determined in  accordance with the provisions of this Section, on the paid-in capital of  each of the merged or consolidated corporations as last reported by it in  any document, other than an annual report, required by this Act to be filed  with the Secretary of State, 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 next succeeding extended filing  month of the surviving  or new 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 next succeeding extended filing month of the surviving or new  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  next succeeding extended filing month of the surviving or new corporation  in the next succeeding calendar year.(d) The basis for the annual franchise tax payable by a domestic  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) For the purpose of determining the amount represented in this State  of the paid-in capital of a domestic corporation, the amount represented in  this State 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 or final transition 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 or     consolidation 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 or new corporation immediately after the merger or consolidation, 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 or new corporation that the aggregate amounts represented in this State of the sum of the paid-in capital of the merged or consolidated corporations, separately determined, bore to the total of the sum of the paid-in capital of all of the merged or consolidated corporations immediately prior to the merger or consolidation.(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 corporation on file  on the date represented in this State of the paid-in capital of a domestic  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 articles of incorporation, or, in case of a merger or consolidation  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, from information contained in the report of the surviving or  new corporation of the amount of its paid-in capital following the merger  or consolidation.  For increases 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 domestic 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  articles of incorporation.(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.)