IL SB1719

Adds a new 20% privilege tax on partnerships and S corporations engaged in investment management services, effective July 1, 2017.

Tax applies to fees calculated by reference to investment portfolio performance, but excludes fees based on total assets under management.

Investment management services include advising on asset purchases/sales, managing or acquiring assets, arranging financing, and related support activities involving securities, real estate, partnership interests, and commodities.

Partners conducting investment management services remain liable for individual income tax on their separate or individual capacities under existing law.

Excludes businesses where at least 80% of average fair market value of specified assets consists of real estate from the investment management services definition.