Rep. Maurice A. West II

Filed: 2/27/2019

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1448

2    AMENDMENT NO. ______. Amend House Bill 1448 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by changing
5Section 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
9governing authority, may, after the determination of the
10assessed valuation of its property, order the clerk of that
11county to abate any portion of its taxes on the following types
12of property:
13        (1) Commercial and industrial.
14            (A) The property of any commercial or industrial
15        firm, including but not limited to the property of (i)
16        any firm that is used for collecting, separating,

 

 

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1        storing, or processing recyclable materials, locating
2        within the taxing district during the immediately
3        preceding year from another state, territory, or
4        country, or having been newly created within this State
5        during the immediately preceding year, or expanding an
6        existing facility, or (ii) any firm that is used for
7        the generation and transmission of electricity
8        locating within the taxing district during the
9        immediately preceding year or expanding its presence
10        within the taxing district during the immediately
11        preceding year by construction of a new electric
12        generating facility that uses natural gas as its fuel,
13        or any firm that is used for production operations at a
14        new, expanded, or reopened coal mine within the taxing
15        district, that has been certified as a High Impact
16        Business by the Illinois Department of Commerce and
17        Economic Opportunity. The property of any firm used for
18        the generation and transmission of electricity shall
19        include all property of the firm used for transmission
20        facilities as defined in Section 5.5 of the Illinois
21        Enterprise Zone Act. The abatement shall not exceed a
22        period of 10 years and the aggregate amount of abated
23        taxes for all taxing districts combined shall not
24        exceed $4,000,000.
25            (A-5) Any property in the taxing district of a new
26        electric generating facility, as defined in Section

 

 

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1        605-332 of the Department of Commerce and Economic
2        Opportunity Law of the Civil Administrative Code of
3        Illinois. The abatement shall not exceed a period of 10
4        years. The abatement shall be subject to the following
5        limitations:
6                (i) if the equalized assessed valuation of the
7            new electric generating facility is equal to or
8            greater than $25,000,000 but less than
9            $50,000,000, then the abatement may not exceed (i)
10            over the entire term of the abatement, 5% of the
11            taxing district's aggregate taxes from the new
12            electric generating facility and (ii) in any one
13            year of abatement, 20% of the taxing district's
14            taxes from the new electric generating facility;
15                (ii) if the equalized assessed valuation of
16            the new electric generating facility is equal to or
17            greater than $50,000,000 but less than
18            $75,000,000, then the abatement may not exceed (i)
19            over the entire term of the abatement, 10% of the
20            taxing district's aggregate taxes from the new
21            electric generating facility and (ii) in any one
22            year of abatement, 35% of the taxing district's
23            taxes from the new electric generating facility;
24                (iii) if the equalized assessed valuation of
25            the new electric generating facility is equal to or
26            greater than $75,000,000 but less than

 

 

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1            $100,000,000, then the abatement may not exceed
2            (i) over the entire term of the abatement, 20% of
3            the taxing district's aggregate taxes from the new
4            electric generating facility and (ii) in any one
5            year of abatement, 50% of the taxing district's
6            taxes from the new electric generating facility;
7                (iv) if the equalized assessed valuation of
8            the new electric generating facility is equal to or
9            greater than $100,000,000 but less than
10            $125,000,000, then the abatement may not exceed
11            (i) over the entire term of the abatement, 30% of
12            the taxing district's aggregate taxes from the new
13            electric generating facility and (ii) in any one
14            year of abatement, 60% of the taxing district's
15            taxes from the new electric generating facility;
16                (v) if the equalized assessed valuation of the
17            new electric generating facility is equal to or
18            greater than $125,000,000 but less than
19            $150,000,000, then the abatement may not exceed
20            (i) over the entire term of the abatement, 40% of
21            the taxing district's aggregate taxes from the new
22            electric generating facility and (ii) in any one
23            year of abatement, 60% of the taxing district's
24            taxes from the new electric generating facility;
25                (vi) if the equalized assessed valuation of
26            the new electric generating facility is equal to or

 

 

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1            greater than $150,000,000, then the abatement may
2            not exceed (i) over the entire term of the
3            abatement, 50% of the taxing district's aggregate
4            taxes from the new electric generating facility
5            and (ii) in any one year of abatement, 60% of the
6            taxing district's taxes from the new electric
7            generating facility.
8            The abatement is not effective unless the owner of
9        the new electric generating facility agrees to repay to
10        the taxing district all amounts previously abated,
11        together with interest computed at the rate and in the
12        manner provided for delinquent taxes, in the event that
13        the owner of the new electric generating facility
14        closes the new electric generating facility before the
15        expiration of the entire term of the abatement.
16            The authorization of taxing districts to abate
17        taxes under this subdivision (a)(1)(A-5) expires on
18        January 1, 2010.
19            (B) The property of any commercial or industrial
20        development of at least (i) 500 acres or (ii) 225 acres
21        in the case of a commercial or industrial development
22        that applies for and is granted designation as a High
23        Impact Business under paragraph (F) of item (3) of
24        subsection (a) of Section 5.5 of the Illinois
25        Enterprise Zone Act, having been created within the
26        taxing district. The abatement shall not exceed a

 

 

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1        period of 20 years and the aggregate amount of abated
2        taxes for all taxing districts combined shall not
3        exceed $12,000,000.
4            (C) The property of any commercial or industrial
5        firm currently located in the taxing district that
6        expands a facility or its number of employees. The
7        abatement shall not exceed a period of 10 years and the
8        aggregate amount of abated taxes for all taxing
9        districts combined shall not exceed $4,000,000. The
10        abatement period may be renewed at the option of the
11        taxing districts.
12        (2) Horse racing. Any property in the taxing district
13    which is used for the racing of horses and upon which
14    capital improvements consisting of expansion, improvement
15    or replacement of existing facilities have been made since
16    July 1, 1987. The combined abatements for such property
17    from all taxing districts in any county shall not exceed
18    $5,000,000 annually and shall not exceed a period of 10
19    years.
20        (3) Auto racing. Any property designed exclusively for
21    the racing of motor vehicles. Such abatement shall not
22    exceed a period of 10 years.
23        (4) Academic or research institute. The property of any
24    academic or research institute in the taxing district that
25    (i) is an exempt organization under paragraph (3) of
26    Section 501(c) of the Internal Revenue Code, (ii) operates

 

 

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1    for the benefit of the public by actually and exclusively
2    performing scientific research and making the results of
3    the research available to the interested public on a
4    non-discriminatory basis, and (iii) employs more than 100
5    employees. An abatement granted under this paragraph shall
6    be for at least 15 years and the aggregate amount of abated
7    taxes for all taxing districts combined shall not exceed
8    $5,000,000.
9        (5) Housing for older persons. Any property in the
10    taxing district that is devoted exclusively to affordable
11    housing for older households. For purposes of this
12    paragraph, "older households" means those households (i)
13    living in housing provided under any State or federal
14    program that the Department of Human Rights determines is
15    specifically designed and operated to assist elderly
16    persons and is solely occupied by persons 55 years of age
17    or older and (ii) whose annual income does not exceed 80%
18    of the area gross median income, adjusted for family size,
19    as such gross income and median income are determined from
20    time to time by the United States Department of Housing and
21    Urban Development. The abatement shall not exceed a period
22    of 15 years, and the aggregate amount of abated taxes for
23    all taxing districts shall not exceed $3,000,000.
24        (6) Historical society. For assessment years 1998
25    through 2018, the property of an historical society
26    qualifying as an exempt organization under Section

 

 

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1    501(c)(3) of the federal Internal Revenue Code.
2        (7) Recreational facilities. Any property in the
3    taxing district (i) that is used for a municipal airport,
4    (ii) that is subject to a leasehold assessment under
5    Section 9-195 of this Code and (iii) which is sublet from a
6    park district that is leasing the property from a
7    municipality, but only if the property is used exclusively
8    for recreational facilities or for parking lots used
9    exclusively for those facilities. The abatement shall not
10    exceed a period of 10 years.
11        (8) Relocated corporate headquarters. If approval
12    occurs within 5 years after the effective date of this
13    amendatory Act of the 92nd General Assembly, any property
14    or a portion of any property in a taxing district that is
15    used by an eligible business for a corporate headquarters
16    as defined in the Corporate Headquarters Relocation Act.
17    Instead of an abatement under this paragraph (8), a taxing
18    district may enter into an agreement with an eligible
19    business to make annual payments to that eligible business
20    in an amount not to exceed the property taxes paid directly
21    or indirectly by that eligible business to the taxing
22    district and any other taxing districts for premises
23    occupied pursuant to a written lease and may make those
24    payments without the need for an annual appropriation. No
25    school district, however, may enter into an agreement with,
26    or abate taxes for, an eligible business unless the

 

 

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1    municipality in which the corporate headquarters is
2    located agrees to provide funding to the school district in
3    an amount equal to the amount abated or paid by the school
4    district as provided in this paragraph (8). Any abatement
5    ordered or agreement entered into under this paragraph (8)
6    may be effective for the entire term specified by the
7    taxing district, except the term of the abatement or annual
8    payments may not exceed 20 years.
9        (9) United States Military Public/Private Residential
10    Developments. Each building, structure, or other
11    improvement designed, financed, constructed, renovated,
12    managed, operated, or maintained after January 1, 2006
13    under a "PPV Lease", as set forth under Division 14 of
14    Article 10, and any such PPV Lease.
15        (10) Property located in a business corridor that
16    qualifies for an abatement under Section 18-184.10.
17        (11) Under Section 11-15.4-25 of the Illinois
18    Municipal Code, property located within an urban
19    agricultural area that is used by a qualifying farmer for
20    processing, growing, raising, or otherwise producing
21    agricultural products.
22        (12) Residential property that qualifies for an
23    abatement under any program adopted by the governing
24    authority of the taxing district for the purpose of
25    revitalizing or stabilizing neighborhoods.
26    (b) Upon a majority vote of its governing authority, any

 

 

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1municipality may, after the determination of the assessed
2valuation of its property, order the county clerk to abate any
3portion of its taxes on any property that is located within the
4corporate limits of the municipality in accordance with Section
58-3-18 of the Illinois Municipal Code.
6(Source: P.A. 100-1133, eff. 1-1-19.)".