093_HB2499

 
                                     LRB093 08174 SJM 08381 b

 1        AN ACT concerning taxes.

 2        WHEREAS, Article IX, Section 5,  subsection  (c)  of  the
 3    Illinois  Constitution  of  1970  provides that "On or before
 4    January 1, 1979, the General Assembly by  law  shall  abolish
 5    all  ad  valorem  personal  property  taxes  and concurrently
 6    therewith and thereafter shall replace all  revenue  lost  by
 7    units of local government and school districts as a result of
 8    the   abolition   of   ad  valorem  personal  property  taxes
 9    subsequent to January 2, 1971."; and

10        WHEREAS, Public Act 81-1, 1st Special Session,  abolished
11    the  personal  property tax and created the personal property
12    tax replacement income tax and the invested capital tax; and

13        WHEREAS, During the period between  the  ratification  of
14    the  Illinois  Constitution  of  1970 and December 31, 1977 a
15    number of counties  in  Illinois  changed  the  way  personal
16    property and real property were designated; and

17        WHEREAS,  This  change in the designation of personal and
18    real property was frozen by the passage of Public Act 81-1st.
19    S.S.-1, effective September 19, 1979; and

20        WHEREAS, As a result, in some counties, what is otherwise
21    commonly considered as personal property  is  taxed  as  real
22    property  by  the  county under the Property Tax Code, and at
23    the same time taxpayers in those counties are required to pay
24    personal property tax replacement  income  tax  and  invested
25    capital tax; therefore

26        Be  it  enacted  by  the People of the State of Illinois,
27    represented in the General Assembly:

28        Section 2.  The State Revenue Sharing Act is  amended  by
29    changing Section 12 as follows:
 
                            -2-      LRB093 08174 SJM 08381 b
 1        (30 ILCS 115/12) (from Ch. 85, par. 616)
 2        Sec.  12.   Personal Property Tax Replacement Fund. There
 3    is hereby created the Personal Property Tax Replacement Fund,
 4    a special fund in the State Treasury into which shall be paid
 5    all revenue realized:
 6        (a)  all amounts realized from  the  additional  personal
 7    property  tax  replacement  income tax imposed by subsections
 8    (c) and (d) of Section 201 of the Illinois  Income  Tax  Act,
 9    except for those amounts deposited into the Income Tax Refund
10    Fund  pursuant  to  subsection  (c)  of  Section  901  of the
11    Illinois Income Tax Act; and
12        (b)  all amounts realized from  the  additional  personal
13    property   replacement  invested  capital  taxes  imposed  by
14    Section 2a.1 of the Messages Tax Act, Section 2a.1 of the Gas
15    Revenue Tax  Act,   Section  2a.1  of  the  Public  Utilities
16    Revenue  Act,  and  Section  3  of the Water Company Invested
17    Capital Tax Act, and amounts payable  to  the  Department  of
18    Revenue    under    the   Telecommunications   Infrastructure
19    Maintenance Fee Act.
20        As soon as may be  after  the  end  of  each  month,  the
21    Department  of Revenue shall certify to the Treasurer and the
22    Comptroller the amount of all refunds paid out of the General
23    Revenue Fund  through  the  preceding  month  on  account  of
24    overpayment  of  liability  on  taxes  paid into the Personal
25    Property  Tax  Replacement  Fund.  Upon   receipt   of   such
26    certification,   the  Treasurer  and  the  Comptroller  shall
27    transfer the amount so certified from the  Personal  Property
28    Tax Replacement Fund into the General Revenue Fund.
29        The  payments  of  revenue into the Personal Property Tax
30    Replacement Fund shall be used exclusively  for  distribution
31    to  taxing  districts as provided in this Section, payment of
32    the  expenses  of  the  Department  of  Revenue  incurred  in
33    administering the collection and distribution of monies  paid
34    into the Personal Property Tax Replacement Fund and transfers
 
                            -3-      LRB093 08174 SJM 08381 b
 1    due  to refunds to taxpayers for overpayment of liability for
 2    taxes paid into the Personal Property Tax Replacement Fund.
 3        As soon as may  be  after  the  effective  date  of  this
 4    amendatory  Act  of  1980,  the  Department  of Revenue shall
 5    certify to  the  Treasurer  the  amount  of  net  replacement
 6    revenue  paid  into  the  General  Revenue Fund prior to that
 7    effective date from the additional  tax  imposed  by  Section
 8    2a.1 of the Messages Tax Act; Section 2a.1 of the Gas Revenue
 9    Tax  Act;  Section  2a.1 of the Public Utilities Revenue Act;
10    Section 3 of the Water  Company  Invested  Capital  Tax  Act;
11    amounts  collected  by  the  Department  of Revenue under the
12    Telecommunications Infrastructure Maintenance  Fee  Act;  and
13    the  additional  personal property tax replacement income tax
14    imposed by the Illinois Income Tax Act, as amended by  Public
15    Act  81-1st  Special Session-1. Net replacement revenue shall
16    be defined as the total amount paid into and remaining in the
17    General Revenue Fund as a result  of  those  Acts  minus  the
18    amount  outstanding  and  obligated  from the General Revenue
19    Fund in state vouchers or warrants  prior  to  the  effective
20    date  of  this amendatory Act of 1980 as refunds to taxpayers
21    for overpayment of liability under those Acts.
22        All interest earned by monies accumulated in the Personal
23    Property Tax Replacement Fund  shall  be  deposited  in  such
24    Fund.  All  amounts  allocated  pursuant  to this Section are
25    appropriated on a continuing basis.
26        Prior to December 31, 1980, as soon as may be  after  the
27    end  of  each  quarter  beginning  with  the  quarter  ending
28    December  31,  1979,  and  on and after December 31, 1980, as
29    soon as may be after January 1, March 1, April 1, May 1, July
30    1, August 1, October 1 and  December  1  of  each  year,  the
31    Department  of Revenue shall allocate to each taxing district
32    as defined in Section 1-150 of  the  Property  Tax  Code,  in
33    accordance  with  the  provisions  of  paragraph  (2) of this
34    Section the  portion  of  the  funds  held  in  the  Personal
 
                            -4-      LRB093 08174 SJM 08381 b
 1    Property  Tax  Replacement  Fund  which  is  required  to  be
 2    distributed,  as provided in paragraph (1), for each quarter.
 3    Provided, however, under no circumstances  shall  any  taxing
 4    district  during  each of the first two years of distribution
 5    of the taxes imposed  by  this  amendatory  Act  of  1979  be
 6    entitled to an annual allocation which is less than the funds
 7    such   taxing  district  collected  from  the  1978  personal
 8    property tax. Provided further that  under  no  circumstances
 9    shall   any   taxing   district  during  the  third  year  of
10    distribution of the taxes imposed by this amendatory  Act  of
11    1979  receive less than 60% of the funds such taxing district
12    collected from the 1978 personal property tax. In  the  event
13    that  the total of the allocations made as above provided for
14    all taxing districts, during either of such 3 years,  exceeds
15    the  amount available for distribution the allocation of each
16    taxing district shall be proportionately reduced.  Except  as
17    provided in Section 13 of this Act, the Department shall then
18    certify,  pursuant  to appropriation, such allocations to the
19    State Comptroller who shall pay over to  the  several  taxing
20    districts the respective amounts allocated to them.
21        Any  township which receives an allocation based in whole
22    or in part upon  personal  property  taxes  which  it  levied
23    pursuant  to  Section  6-507 or 6-512 of the Illinois Highway
24    Code and which was previously required to be paid over  to  a
25    municipality  shall immediately pay over to that municipality
26    a proportionate share of the  personal  property  replacement
27    funds which such township receives.
28        Any  municipality  or township, other than a municipality
29    with a population in excess of  500,000,  which  receives  an
30    allocation  based  in  whole  or in part on personal property
31    taxes which it levied pursuant to Sections 3-1, 3-4  and  3-6
32    of  the  Illinois  Local Library Act and which was previously
33    required  to  be  paid  over  to  a  public   library   shall
34    immediately pay over to that library a proportionate share of
 
                            -5-      LRB093 08174 SJM 08381 b
 1    the  personal  property  tax  replacement  funds  which  such
 2    municipality  or  township  receives; provided that if such a
 3    public library has converted to a library organized under The
 4    Illinois Public Library District Act, regardless  of  whether
 5    such  conversion  has occurred on, after or before January 1,
 6    1988, such proportionate share shall be immediately paid over
 7    to the library district  which  maintains  and  operates  the
 8    library.  However,  any  library  that has converted prior to
 9    January 1, 1988, and which  hitherto  has  not  received  the
10    personal  property  tax replacement funds, shall receive such
11    funds commencing on January 1, 1988.
12        Any township which receives an allocation based in  whole
13    or  in  part  on  personal  property  taxes  which  it levied
14    pursuant to Section 1c of the Public Graveyards Act and which
15    taxes were previously required to be paid over to or used for
16    such public cemetery or cemeteries shall immediately pay over
17    to  or  use  for  such  public  cemetery  or   cemeteries   a
18    proportionate  share of the personal property tax replacement
19    funds which the township receives.
20        Any taxing district which receives an allocation based in
21    whole or in part upon personal property taxes which it levied
22    for another governmental body  or  school  district  in  Cook
23    County  in  1976  or  for another governmental body or school
24    district  in  the  remainder  of  the  State  in  1977  shall
25    immediately pay over to  that  governmental  body  or  school
26    district  the  amount  of personal property replacement funds
27    which such governmental body or school district would receive
28    directly under  the  provisions  of  paragraph  (2)  of  this
29    Section, had it levied its own taxes.
30             (1)  The   portion  of  the  Personal  Property  Tax
31        Replacement Fund required to be  distributed  as  of  the
32        time  allocation  is  required  to  be  made shall be the
33        amount available in such Fund as of the  time  allocation
34        is required to be made.
 
                            -6-      LRB093 08174 SJM 08381 b
 1             The  amount  available for distribution shall be the
 2        total amount in the fund at such time minus the necessary
 3        administrative expenses as limited by  the  appropriation
 4        and  the  amount  determined  by:   (a)  $2.8 million for
 5        fiscal year 1981; (b) for fiscal year 1982, .54%  of  the
 6        funds  distributed  from  the  fund  during the preceding
 7        fiscal year; (c) for fiscal year 1983 through fiscal year
 8        1988, .54% of the funds distributed from the fund  during
 9        the  preceding  fiscal  year  less  .02% of such fund for
10        fiscal year 1983 and less .02% of  such  funds  for  each
11        fiscal  year  thereafter, or (d) for fiscal year 1989 and
12        beyond no more than 105%  of  the  actual  administrative
13        expenses  of  the  prior fiscal year. Such portion of the
14        fund shall be determined  after  the  transfer  into  the
15        General  Revenue  Fund  due to refunds, if any, paid from
16        the General Revenue Fund during the preceding quarter. If
17        at any time, for any reason, there is insufficient amount
18        in the Personal Property Tax Replacement Fund for payment
19        of costs  of  administration  or  for  transfers  due  to
20        refunds at the end of any particular month, the amount of
21        such insufficiency shall be carried over for the purposes
22        of  transfers  into  the  General  Revenue  Fund  and for
23        purposes of costs  of  administration  to  the  following
24        month  or  months.   Net  replacement  revenue  held, and
25        defined above, shall be transferred by the Treasurer  and
26        Comptroller to the Personal Property Tax Replacement Fund
27        within 10 days of such certification.
28             (2)  Each   quarterly   allocation  shall  first  be
29        apportioned in the following manner:  51.65%  for  taxing
30        districts  in Cook County and 48.35% for taxing districts
31        in the remainder of the State.
32        Until January 1, 2004, the Personal Property  Replacement
33    Ratio  of  each  taxing district outside Cook County shall be
34    the ratio which the Tax Base of that taxing district bears to
 
                            -7-      LRB093 08174 SJM 08381 b
 1    the Downstate Tax Base.  The Tax Base of each taxing district
 2    outside  of  Cook  County  is  the  personal   property   tax
 3    collections  for  that taxing district for the 1977 tax year.
 4    The  Downstate  Tax  Base  is  the  personal   property   tax
 5    collections  for all taxing districts in the State outside of
 6    Cook County for the 1977 tax year. The Department of  Revenue
 7    shall  have authority to review for accuracy and completeness
 8    the  personal  property  tax  collections  for  each   taxing
 9    district outside Cook County for the 1977 tax year.
10        Within   60   days  after  the  effective  date  of  this
11    amendatory Act of the 93rd General Assembly,  the  Department
12    of Revenue shall review and adjust the Tax Base of any taxing
13    district  located  in  any county in which, during the period
14    between the ratification of the Illinois Constitution of 1970
15    and  December  31,  1977,  the  supervisor   of   assessments
16    reclassified  as  real  property  on  a county-wide basis for
17    purposes of taxation, property that had  been  classified  as
18    personal  property  during  that  period  by  creating  a new
19    assessment category to identify such  reclassified  property.
20    The Department of Revenue shall determine the Tax Base of the
21    taxing  district  without  regard to that reclassification as
22    provided in this amendatory Act of the 93rd General Assembly.
23    The Downstate Tax Base shall also be adjusted  by  an  amount
24    equal  to any adjustment in the Tax Base of a taxing district
25    made in accordance with  this  amendatory  Act  of  the  93rd
26    General Assembly.
27        Beginning  on  January  1,  2004,  the  Personal Property
28    Replacement Ratio of each taxing district outside Cook County
29    shall be the ratio which the Tax Base of that taxing district
30    bears to the Downstate Tax Base.  The Tax Base of each taxing
31    district outside Cook County is  the  personal  property  tax
32    collections  for  that taxing district for the 1977 tax year,
33    as adjusted by the Department of Revenue in  accordance  with
34    this   amendatory  Act  of  the  93rd  General  Assembly.  In
 
                            -8-      LRB093 08174 SJM 08381 b
 1    adjusting the Tax Base of a taxing district,  the  Department
 2    of   Revenue   shall  rely  upon  the  certification  of  the
 3    supervisor of assessments for the county in which the  taxing
 4    district  is  located,  in  whole  or in part, certifying the
 5    taxing district's 1977 personal property tax  collections  as
 6    adjusted  by including in the taxing district's 1977 personal
 7    property tax collections, the taxing district's share of  the
 8    1977  tax  collections on the property that was identified in
 9    the  new  assessment  category  created  in  the  county  for
10    reclassified property, as referred to  above,  determined  by
11    multiplying   the  2002  assessed  value  of  the  Terminated
12    Property (as defined in Section  24-5  of  the  Property  Tax
13    Code) located in the taxing district by the taxing district's
14    1977  tax  rate.    The  certification  of  the supervisor of
15    assessments shall be  supported  by  such  documents  as  the
16    Department of Revenue may request.
17        The  allocation  to  any  taxing district outside of Cook
18    County, except for the fire protection  districts,  shall  be
19    reduced  by  the  amount  allowed to taxpayers in that taxing
20    district as an income tax credit  during  the  preceding  tax
21    year under Section 213 of the Illinois Income Tax Act. If the
22    allocation  reduction  for the amount allowed to taxpayers as
23    an income tax credit exceeds  the  allocation  amount  for  a
24    taxing  district,  the excess amount shall be carried forward
25    and reduce the subsequent allocation to that taxing district.
26    The amount by  which  any  taxing  district's  allocation  is
27    reduced   shall   be  distributed  to  the  remaining  taxing
28    districts outside of Cook County according  to  the  Personal
29    Property Replacement Ratio of each taxing district outside of
30    Cook County.
31        The  Personal  Property  Replacement  Ratio  of each Cook
32    County taxing district shall be the ratio which the Tax  Base
33    of  that  taxing  district bears to the Cook County Tax Base.
34    The Tax Base of each  Cook  County  taxing  district  is  the
 
                            -9-      LRB093 08174 SJM 08381 b
 1    personal  property  tax  collections for that taxing district
 2    for the 1976 tax year.  The  Cook  County  Tax  Base  is  the
 3    personal property tax collections for all taxing districts in
 4    Cook  County for the 1976 tax year. The Department of Revenue
 5    shall have authority to review for accuracy and  completeness
 6    the   personal  property  tax  collections  for  each  taxing
 7    district within Cook County for the 1976 tax year.
 8        For all purposes of this Section 12, amounts  paid  to  a
 9    taxing  district for such tax years as may be applicable by a
10    foreign corporation under the provisions of Section 7-202  of
11    the  Public  Utilities Act, as amended, shall be deemed to be
12    personal property taxes collected by such taxing district for
13    such tax years as  may  be  applicable.  The  Director  shall
14    determine  from the Illinois Commerce Commission, for any tax
15    year as may be applicable, the amounts so paid  by  any  such
16    foreign  corporation  to  any  and  all taxing districts. The
17    Illinois Commerce Commission shall furnish  such  information
18    to  the  Director.  For  all purposes of this Section 12, the
19    Director shall deem such amounts  to  be  collected  personal
20    property   taxes   of  each  such  taxing  district  for  the
21    applicable tax year or years.
22        Taxing districts located both in Cook County and  in  one
23    or  more  other  counties  shall  receive  both a Cook County
24    allocation and a Downstate allocation determined in the  same
25    way as all other taxing districts.
26        If  any  taxing  district  in  existence  on July 1, 1979
27    ceases to exist, or discontinues its operations, its Tax Base
28    shall thereafter be deemed to be zero.  If the powers, duties
29    and obligations  of  the  discontinued  taxing  district  are
30    assumed  by  another  taxing  district,  the  Tax Base of the
31    discontinued taxing district shall be added to the  Tax  Base
32    of  the  taxing  district  assuming  such  powers, duties and
33    obligations.
34        If two or more taxing districts in existence on  July  1,
 
                            -10-     LRB093 08174 SJM 08381 b
 1    1979,  or a successor or successors thereto shall consolidate
 2    into one taxing district, the Tax Base of  such  consolidated
 3    taxing  district shall be the sum of the Tax Bases of each of
 4    the taxing districts which have consolidated.
 5        If a single taxing district in existence on July 1, 1979,
 6    or a successor or successors thereto shall  be  divided  into
 7    two  or  more  separate taxing districts, the tax base of the
 8    taxing district so divided shall be allocated to each of  the
 9    resulting  taxing districts in proportion to the then current
10    equalized assessed value of each resulting taxing district.
11        If a portion of the territory of  a  taxing  district  is
12    disconnected  and  annexed  to another taxing district of the
13    same type, the Tax Base of the  taxing  district  from  which
14    disconnection  was made shall be reduced in proportion to the
15    then current equalized assessed  value  of  the  disconnected
16    territory   as  compared  with  the  then  current  equalized
17    assessed value within the  entire  territory  of  the  taxing
18    district  prior  to  disconnection,  and  the  amount of such
19    reduction shall be added  to  the  Tax  Base  of  the  taxing
20    district to which annexation is made.
21        If  a community college district is created after July 1,
22    1979, beginning on the effective date of this amendatory  Act
23    of  1995,  its  Tax  Base  shall  be  3.5%  of the sum of the
24    personal property tax collected for the 1977 tax year  within
25    the territorial jurisdiction of the district.
26        The  amounts  allocated  and  paid  to  taxing  districts
27    pursuant  to  the  provisions  of this amendatory Act of 1979
28    shall be deemed to be substitute revenues  for  the  revenues
29    derived  from  taxes imposed on personal property pursuant to
30    the provisions of the "Revenue Act of 1939" or  "An  Act  for
31    the  assessment  and taxation of private car line companies",
32    approved July 22, 1943, as amended, or  Section  414  of  the
33    Illinois Insurance Code, prior to the abolition of such taxes
34    and  shall  be  used  for  the  same purposes as the revenues
 
                            -11-     LRB093 08174 SJM 08381 b
 1    derived from ad valorem taxes on real estate.
 2        Monies received by any taxing districts from the Personal
 3    Property Tax Replacement Fund shall be first  applied  toward
 4    payment of the proportionate amount of debt service which was
 5    previously  levied  and  collected  from  extensions  against
 6    personal  property  on  bonds  outstanding as of December 31,
 7    1978 and next applied toward  payment  of  the  proportionate
 8    share  of the pension or retirement obligations of the taxing
 9    district which were  previously  levied  and  collected  from
10    extensions   against   personal   property.   For  each  such
11    outstanding bond issue, the County Clerk shall determine  the
12    percentage  of  the  debt  service  which  was collected from
13    extensions against real estate in  the  taxing  district  for
14    1978 taxes payable in 1979, as related to the total amount of
15    such levies and collections from extensions against both real
16    and personal property.  For 1979 and subsequent years' taxes,
17    the County Clerk shall levy and extend taxes against the real
18    estate  of  each  taxing  district  which will yield the said
19    percentage  or  percentages  of  the  debt  service  on  such
20    outstanding bonds. The balance of  the  amount  necessary  to
21    fully  pay  such  debt  service  shall constitute a first and
22    prior lien upon the  monies  received  by  each  such  taxing
23    district  through  the Personal Property Tax Replacement Fund
24    and shall be first applied or set aside for such purpose.  In
25    counties  having  fewer  than  3,000,000   inhabitants,   the
26    amendments  to  this paragraph as made by this amendatory Act
27    of  1980  shall  be  first  applicable to  1980  taxes to  be
28    collected in 1981.
29    (Source: P.A. 92-526, eff. 1-1-03.)

30        Section  5.   The  Illinois  Income Tax Act is amended by
31    adding Section 213 as follows:

32        (35 ILCS 5/213 new)
 
                            -12-     LRB093 08174 SJM 08381 b
 1        Sec. 213.  Personal property  tax  credit.   For  taxable
 2    years beginning on or after January 1, 2004, each taxpayer is
 3    entitled  to  a credit against the tax imposed by subsections
 4    (c) and (d) of Section 201 in an amount equal to  the  amount
 5    of real property tax paid in the taxable year for property in
 6    the  taxpayer's  possession  on  December  31,  2002  and for
 7    property of like kind that is  placed  in  use  on  or  after
 8    January 1, 2003, the property taxes on which are cumulatively
 9    reduced  to zero under Section 24-5 of the Property Tax Code;
10    provided, however, that a taxpayer entitled to  receive  real
11    property tax rebates on such like kind property or Terminated
12    Property  pursuant the Tax Increment Allocation Redevelopment
13    Act (Division 74.4 of Article ll of  the  Illinois  Municipal
14    Code)  or  any  other  statute  allowing  real  property  tax
15    rebates,  or a taxpayer entitled to receive real property tax
16    abatements on such like kind property or Terminated  Property
17    pursuant to any agreement authorized by statute, shall not be
18    entitled to the credit against the tax imposed by subsections
19    (c)  and  (d)  of Section 201 allowed by this Section for any
20    tax year commencing prior to the termination of the agreement
21    providing for the real property tax rebates or abatements. If
22    a credit allowed under this Section exceeds the tax due by  a
23    taxpayer  pursuant  to subsections (c) and (d) of Section 201
24    for any taxable  year,  the  excess  credit  may  be  carried
25    forward  for  the  5 subsequent tax years and applied against
26    the tax imposed by subsections (c) and (d) of Section 201 for
27    each of those years. A partner that qualifies its partnership
28    for a subtraction under subparagraph (I) of paragraph (2)  of
29    subsection (d) of Section 203 or a shareholder that qualifies
30    a   Subchapter   S   corporation   for  a  subtraction  under
31    subparagraph (S)  of  paragraph  (2)  of  subsection  (b)  of
32    Section  203  shall  be  allowed  a credit under this Section
33    equal to its share of the credit earned  under  this  Section
34    during  the  taxable  year by the partnership or Subchapter S
 
                            -13-     LRB093 08174 SJM 08381 b
 1    corporation, determined in accordance with the  determination
 2    of income and distributive share of income under Sections 702
 3    and  704  and  Subchapter S of the Internal Revenue Code. All
 4    tax credits allowed  under  this  Section  shall  be  charged
 5    against that portion of the Personal Property Tax Replacement
 6    Fund  allocated  to  taxing districts located outside of Cook
 7    County.  The  Department  must  adopt  rules  concerning  the
 8    administration of this credit.  This Section is  exempt  from
 9    the provisions of Section 250.

10        Section 10.  The Property Tax Code is amended by changing
11    Section 24-5 as follows:

12        (35 ILCS 200/24-5)
13        Sec. 24-5.  Tax on personal property. Ad valorem personal
14    property  taxes  shall not be levied on any personal property
15    having tax situs in this State. However, this  Section  shall
16    not  prohibit  the  collection  after  January 1, 1979 of any
17    taxes levied under this Code prior to  January  1,  1979,  on
18    personal  property  subject  to assessment and taxation under
19    this Code prior to January  1,  1979.  No  property  lawfully
20    assessed  and  taxed as personal property prior to January 1,
21    1979, or property of like kind  acquired  or  placed  in  use
22    after  January  1, 1979, shall be classified as real property
23    subject to assessment  and  taxation.  No  property  lawfully
24    assessed and taxed as real property prior to January 1, 1979,
25    or  property  of  like  kind  acquired or placed in use after
26    January 1, 1979, shall be classified  as  personal  property.
27    Property  acquired  before January 1, 2003 that is identified
28    in the new assessment category  referred  to  in  subdivision
29    (b)(2) of Section 12 of the State Revenue Sharing Act and is,
30    on  the  effective  date  of  this amendatory Act of the 93rd
31    General Assembly, taxed as  real  property  under  this  Code
32    shall  be  referred to herein as Stranded Property. The ratio
 
                            -14-     LRB093 08174 SJM 08381 b
 1    resulting from  dividing  the  1977  assessed  value  of  all
 2    Stranded  Property located in the county by the 2002 assessed
 3    value of all Stranded Property located in the county shall be
 4    referred to herein as the  Terminated  Property  Ratio.   The
 5    2003  assessed  value  of  each  taxpayer's Stranded Property
 6    located  in  the  county  on  December  31,  2002  shall   be
 7    proportionately  reduced  by  the  Terminated Property Ratio.
 8    Terminated Property is that portion of Stranded Property that
 9    has been reduced  by  the  Terminated  Property  Ratio.   The
10    remainder  resulting  from  the subtraction of the Terminated
11    Property from the Stranded  Property  shall  continue  to  be
12    taxed  as real property.  Notwithstanding any other provision
13    of law to the contrary, taxation of  Terminated  Property  as
14    real property shall be cumulatively terminated over a 20-year
15    period as provided herein.
16        Commencing  January  1,  2003,  the assessed value of the
17    Terminated Property for purposes of taxes  on  real  property
18    shall  be  cumulatively decreased by 5% of the initial amount
19    each year by the  supervisor  of  assessments  and  shall  be
20    reduced  to  zero  in  the  20th  year. The assessed value of
21    property of like kind to  the  Terminated  Property  that  is
22    placed  in  use  on or after January 1, 2003 shall be reduced
23    uniformly with the assessed value of the Terminated Property.
24    The reduction shall begin at the  percentage  applicable  for
25    the year in which it is first placed in use. The changes made
26    to  this  Section  by this amendatory Act of the 93rd General
27    Assembly are a denial and limitation of home rule powers  and
28    functions under subsection (g) of Section 6 of Article VII of
29    the Illinois Constitution.
30        Nothing  in  this  amendatory  Act  of  the  93rd General
31    Assembly shall be used or construed to in any  manner  affect
32    the definitions of what constitutes real property or personal
33    property  as  of the effective date of this amendatory Act of
34    the 93rd General Assembly.
 
                            -15-     LRB093 08174 SJM 08381 b
 1    (Source: P.A. 82-935; 88-455.)

 2        Section 99.  Effective date.  This Act  takes  effect  on
 3    July 1, 2003.