093_SB1446

 
                                     LRB093 06139 SJM 11553 b

 1        AN ACT concerning taxes, which may be referred to as  the
 2    Retirement Community Economic Development Incentive Act.

 3        WHEREAS,  Over $1,000,000,000 annually is transferred out
 4    of Illinois by retirees to Southern-tier states; and

 5        WHEREAS, Illinois is second only to New York in net  loss
 6    of  people migrating to other states, averaging a net loss in
 7    excess of 20,000 people per year; and

 8        WHEREAS, It takes 3.7 factory jobs to equal the  economic
 9    impact of one active adult retirement household; and

10        WHEREAS,  Retirees have money, spend it, and don't burden
11    municipal services; and

12        WHEREAS, Active adult retirement communities are a magnet
13    for new business development; and

14        WHEREAS,  Retaining  retirees  in  Illinois  means   more
15    business,  and  more  business  means  more jobs and more tax
16    dollars; and

17        WHEREAS, A typical active adult  retiree  household  will
18    spend  in excess of $2,000 per year in sales tax, income tax,
19    car registration fees, highway tolls, and, in some instances,
20    business license  fees;  property  taxes  are  another  major
21    expenditure;  in  addition to that, taxes will be paid by the
22    people newly employed; and

23        WHEREAS,   Active   adult   planned   unit    development
24    communities'  restrictions  prohibit  full-time  residency by
25    anyone under age 19; and

26        WHEREAS, To level the playing field between Illinois  and
27    the   Southern-tier   states,  this  legislation  proposes  a
28    refundable tax credit; the credit would apply only  to  those
29    living  in  active adult planned unit development communities
30    and would be equal to 50% of the amount the property owner in
 
                            -2-      LRB093 06139 SJM 11553 b
 1    an active adult community is paying to  the  schools  through
 2    property taxes;

 3        WHEREAS,  The  tax  credit  proposed  by this legislation
 4    would have the following benefits:
 5             (1)  Schools will not be penalized because they will
 6        get the amount of their levy anyway;
 7             (2)  The State is not mortgaging new  income  flows,
 8        but  is  providing the credit out of funds it already has
 9        and will continue to receive; and
10             (3)  Illinois money stays in Illinois; therefore

11        Be it enacted by the People of  the  State  of  Illinois,
12    represented in the General Assembly:

13        Section  5.  The  Illinois  Income  Tax Act is amended by
14    adding Section 208.2 as follows:

15        (35 ILCS 5/208.2 new)
16        Sec. 208.2.  Retirement  Community  Economic  Development
17    Incentive Credit.
18        (a)  Beginning  with  taxable  years  ending  on or after
19    December  31,  2003,  every  individual  taxpayer  who   owns
20    property   in   an  active  adult  planned  unit  development
21    community is entitled to a credit against the tax imposed  by
22    subsections  (a) and (b) of Section 201 in an amount equal to
23    50% of the real property taxes  extended  on  behalf  of  the
24    school  district  and paid by the taxpayer during the taxable
25    year on the principal residence of the taxpayer.
26        (b)  If a credit allowed under this Section  exceeds  the
27    tax  liability  of the taxpayer, the taxpayer shall receive a
28    refund for the amount of the excess.
29        (c)  The Department shall adopt  rules  defining  "active
30    adult planned unit development community".
31        (d)  This  Section  is  exempt  from  the  provisions  of
 
                            -3-      LRB093 06139 SJM 11553 b
 1    Section 250.

 2        Section  99.  Effective  date. This Act takes effect upon
 3    becoming law.