IL SB3189

Adds a new privilege tax on partnerships and S corporations engaged in investment management services, effective July 1, 2018.

Imposes a 20% tax rate on fees calculated by reference to the performance of investment portfolio funds, excluding fees based on total assets under management.

Defines "investment management services" to include advising on asset purchases/sales, managing or acquiring assets, arranging financing for acquisitions, and related support activities for securities, real estate, partnership interests, commodities, and derivatives.

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

Partners conducting investment management services remain liable for individual income taxes under separate provisions of the Illinois Income Tax Act.