A bill introduced in the Illinois House would impose a 20% privilege tax on investment management service businesses that are:
- investment partnerships, and
- S corporations.
The tax would apply to the fees for the performance of the investment portfolio funds and not from the investment itself.
A similar privilege tax failed to pass both houses of the Illinois General Assembly during the 2017 regular session. Investment partnerships currently are not required to pay the personal property replacement tax that is imposed on other partnerships doing business in Illinois.
H.B. 4293, as introduced in the Illinois House of Representatives on January 19, 2018