093_HB3612enr

 
HB3612 Enrolled                      LRB093 11189 SJM 12195 b

 1        AN ACT concerning taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The Property Tax Code is amended by changing
 5    Section 18-165 as follows:

 6        (35 ILCS 200/18-165)
 7        Sec. 18-165. Abatement of taxes.
 8        (a)  Any taxing district, upon a  majority  vote  of  its
 9    governing  authority,  may,  after  the  determination of the
10    assessed valuation of its property, order the clerk  of  that
11    county  to  abate  any  portion of its taxes on the following
12    types of property:
13             (1)  Commercial and industrial.
14                  (A)  The  property   of   any   commercial   or
15             industrial  firm,  including  but not limited to the
16             property  of  (i)  any  firm  that   is   used   for
17             collecting,   separating,   storing,  or  processing
18             recyclable materials,  locating  within  the  taxing
19             district  during the immediately preceding year from
20             another state, territory, or country, or having been
21             newly  created  within   this   State   during   the
22             immediately preceding year, or expanding an existing
23             facility,  or  (ii)  any  firm  that is used for the
24             generation and transmission of electricity  locating
25             within  the  taxing  district during the immediately
26             preceding year or expanding its presence within  the
27             taxing  district  during  the  immediately preceding
28             year by construction of a  new  electric  generating
29             facility  that  uses natural gas as its fuel, or any
30             firm that is used for  production  operations  at  a
31             new,  expanded,  or  reopened  coal  mine within the
 
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 1             taxing district, that has been certified as  a  High
 2             Impact   Business  by  the  Illinois  Department  of
 3             Commerce and Community Affairs.  The property of any
 4             firm used for the  generation  and  transmission  of
 5             electricity  shall  include all property of the firm
 6             used  for  transmission  facilities  as  defined  in
 7             Section 5.5 of the  Illinois  Enterprise  Zone  Act.
 8             The  abatement shall not exceed a period of 10 years
 9             and the aggregate amount of  abated  taxes  for  all
10             taxing   districts   combined   shall   not   exceed
11             $4,000,000.
12                  (A-5)  Any property in the taxing district of a
13             new  electric  generating  facility,  as  defined in
14             Section 605-332 of the Department  of  Commerce  and
15             Community  Affairs  Law  of the Civil Administrative
16             Code of Illinois. The abatement shall not  exceed  a
17             period  of  10 years. The abatement shall be subject
18             to the following limitations:
19                       (i)  if the equalized  assessed  valuation
20                  of  the  new  electric  generating  facility is
21                  equal to or greater than $25,000,000  but  less
22                  than  $50,000,000,  then  the abatement may not
23                  exceed  (i)  over  the  entire  term   of   the
24                  abatement,   5%   of   the   taxing  district's
25                  aggregate   taxes   from   the   new   electric
26                  generating facility and (ii) in any one year of
27                  abatement, 20% of the taxing  district's  taxes
28                  from the new electric generating facility;
29                       (ii)  if  the equalized assessed valuation
30                  of the  new  electric  generating  facility  is
31                  equal  to  or greater than $50,000,000 but less
32                  than $75,000,000, then the  abatement  may  not
33                  exceed   (i)   over  the  entire  term  of  the
34                  abatement,  10%  of   the   taxing   district's
 
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 1                  aggregate   taxes   from   the   new   electric
 2                  generating facility and (ii) in any one year of
 3                  abatement,  35%  of the taxing district's taxes
 4                  from the new electric generating facility;
 5                       (iii)  if the equalized assessed valuation
 6                  of the  new  electric  generating  facility  is
 7                  equal  to  or greater than $75,000,000 but less
 8                  than $100,000,000, then the abatement  may  not
 9                  exceed   (i)   over  the  entire  term  of  the
10                  abatement,  20%  of   the   taxing   district's
11                  aggregate   taxes   from   the   new   electric
12                  generating facility and (ii) in any one year of
13                  abatement,  50%  of the taxing district's taxes
14                  from the new electric generating facility;
15                       (iv)  if the equalized assessed  valuation
16                  of  the  new  electric  generating  facility is
17                  equal to or greater than $100,000,000 but  less
18                  than  $125,000,000,  then the abatement may not
19                  exceed  (i)  over  the  entire  term   of   the
20                  abatement,   30%   of   the  taxing  district's
21                  aggregate   taxes   from   the   new   electric
22                  generating facility and (ii) in any one year of
23                  abatement, 60% of the taxing  district's  taxes
24                  from the new electric generating facility;
25                       (v)  if  the  equalized assessed valuation
26                  of the  new  electric  generating  facility  is
27                  equal  to or greater than $125,000,000 but less
28                  than $150,000,000, then the abatement  may  not
29                  exceed   (i)   over  the  entire  term  of  the
30                  abatement,  40%  of   the   taxing   district's
31                  aggregate   taxes   from   the   new   electric
32                  generating facility and (ii) in any one year of
33                  abatement,  60%  of the taxing district's taxes
34                  from the new electric generating facility;
 
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 1                       (vi)  if the equalized assessed  valuation
 2                  of  the  new  electric  generating  facility is
 3                  equal to or greater than $150,000,000, then the
 4                  abatement may not exceed (i)  over  the  entire
 5                  term  of  the  abatement,  50%  of  the  taxing
 6                  district's   aggregate   taxes   from  the  new
 7                  electric generating facility and  (ii)  in  any
 8                  one  year  of  abatement,  60%  of  the  taxing
 9                  district's   taxes   from   the   new  electric
10                  generating facility.
11                  The abatement is not effective unless the owner
12             of the new electric generating  facility  agrees  to
13             repay  to the taxing district all amounts previously
14             abated, together with interest computed at the  rate
15             and  in the manner provided for delinquent taxes, in
16             the  event  that  the  owner  of  the  new  electric
17             generating  facility   closes   the   new   electric
18             generating  facility  before  the  expiration of the
19             entire term of the abatement.
20                  The authorization of taxing districts to  abate
21             taxes  under this subdivision (a)(1)(A-5) expires on
22             January 1, 2010.
23                  (B)  The  property   of   any   commercial   or
24             industrial  development of at least 500 acres having
25             been  created  within  the  taxing  district.    The
26             abatement  shall not exceed a period of 20 years and
27             the aggregate amount of abated taxes for all  taxing
28             districts combined shall not exceed $12,000,000.
29                  (C)  The   property   of   any   commercial  or
30             industrial firm  currently  located  in  the  taxing
31             district  that  expands  a facility or its number of
32             employees. The abatement shall not exceed  a  period
33             of 10 years and the aggregate amount of abated taxes
34             for  all  taxing districts combined shall not exceed
 
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 1             $4,000,000. The abatement period may be  renewed  at
 2             the option of the taxing districts.
 3             (2)  Horse  racing.   Any  property  in  the  taxing
 4        district  which is used for the racing of horses and upon
 5        which  capital  improvements  consisting  of   expansion,
 6        improvement  or  replacement  of existing facilities have
 7        been made since July 1, 1987.   The  combined  abatements
 8        for such property from all taxing districts in any county
 9        shall not exceed $5,000,000 annually and shall not exceed
10        a period of 10 years.
11             (3)  Auto racing.  Any property designed exclusively
12        for  the  racing  of motor vehicles. Such abatement shall
13        not exceed a period of 10 years.
14             (4)  Academic or research institute.   The  property
15        of  any  academic  or  research  institute  in the taxing
16        district  that  (i)  is  an  exempt  organization   under
17        paragraph  (3)  of Section 501(c) of the Internal Revenue
18        Code, (ii) operates for the  benefit  of  the  public  by
19        actually  and  exclusively performing scientific research
20        and making the results of the research available  to  the
21        interested  public  on  a  non-discriminatory  basis, and
22        (iii) employs more  than  100  employees.   An  abatement
23        granted  under  this  paragraph  shall be for at least 15
24        years and the aggregate amount of abated  taxes  for  all
25        taxing districts combined shall not exceed $5,000,000.
26             (5)  Housing for older persons.  Any property in the
27        taxing district that is devoted exclusively to affordable
28        housing  for  older  households.   For  purposes  of this
29        paragraph, "older households" means those households  (i)
30        living  in  housing  provided  under any State or federal
31        program that the Department of Human Rights determines is
32        specifically designed  and  operated  to  assist  elderly
33        persons and is solely occupied by persons 55 years of age
34        or older and (ii) whose annual income does not exceed 80%
 
HB3612 Enrolled             -6-      LRB093 11189 SJM 12195 b
 1        of  the  area  gross  median  income, adjusted for family
 2        size,  as  such  gross  income  and  median  income   are
 3        determined  from  time  to  time  by  the  United  States
 4        Department   of   Housing  and  Urban  Development.   The
 5        abatement shall not exceed a period of 15 years, and  the
 6        aggregate amount of abated taxes for all taxing districts
 7        shall not exceed $3,000,000.
 8             (6)  Historical  society.  For assessment years 1998
 9        through 2008 2003, the property of an historical  society
10        qualifying   as  an  exempt  organization  under  Section
11        501(c)(3) of the federal Internal Revenue Code.
12             (7)  Recreational facilities.  Any property  in  the
13        taxing district (i) that is used for a municipal airport,
14        (ii)  that  is  subject  to  a leasehold assessment under
15        Section 9-195 of this Code and (iii) which is sublet from
16        a park district that  is  leasing  the  property  from  a
17        municipality,   but   only   if   the  property  is  used
18        exclusively for recreational facilities  or  for  parking
19        lots   used   exclusively   for  those  facilities.   The
20        abatement shall not exceed a period of 10 years.
21             (8)  Relocated corporate headquarters.  If  approval
22        occurs  within  5  years after the effective date of this
23        amendatory Act of the 92nd General Assembly, any property
24        or a portion of any property in a taxing district that is
25        used by an eligible business for a corporate headquarters
26        as defined in the Corporate Headquarters Relocation  Act.
27        Instead  of  an  abatement  under  this  paragraph (8), a
28        taxing district may  enter  into  an  agreement  with  an
29        eligible   business  to  make  annual  payments  to  that
30        eligible business in an amount not to exceed the property
31        taxes  paid  directly  or  indirectly  by  that  eligible
32        business to the taxing  district  and  any  other  taxing
33        districts  for  premises  occupied  pursuant to a written
34        lease and may make those payments without the need for an
 
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 1        annual appropriation. No school  district,  however,  may
 2        enter  into  an  agreement  with,  or abate taxes for, an
 3        eligible business unless the municipality  in  which  the
 4        corporate  headquarters  is  located  agrees  to  provide
 5        funding  to the school district in an amount equal to the
 6        amount abated or paid by the school district as  provided
 7        in this paragraph (8). Any abatement ordered or agreement
 8        entered  into  under  this paragraph (8) may be effective
 9        for the entire term specified  by  the  taxing  district,
10        except  the  term of the abatement or annual payments may
11        not exceed 20 years.
12        (b)  Upon a majority vote of its governing authority, any
13    municipality may, after the  determination  of  the  assessed
14    valuation  of  its  property, order the county clerk to abate
15    any portion of its taxes on  any  property  that  is  located
16    within the corporate limits of the municipality in accordance
17    with Section 8-3-18 of the Illinois Municipal Code.
18    (Source:  P.A.  91-644,  eff.  8-20-99;  91-885, eff. 7-6-00;
19    92-12, eff. 7-1-01; 92-207, eff. 8-1-01; 92-247, eff. 8-3-01;
20    92-651, eff. 7-11-02.)

21        Section 99.  Effective date.  This Act takes effect  upon
22    becoming law.