Sen. Toi W. Hutchinson

Filed: 5/20/2011

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 212

2    AMENDMENT NO. ______. Amend House Bill 212 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Property Tax Code is amended by changing
5Section 18-165 and by adding Section 18-184.10 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 500 acres having been created
21        within the taxing district. The abatement shall not
22        exceed a period of 20 years and the aggregate amount of
23        abated taxes for all taxing districts combined shall
24        not exceed $12,000,000.
25            (C) The property of any commercial or industrial
26        firm currently located in the taxing district that

 

 

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1        expands a facility or its number of employees. The
2        abatement shall not exceed a period of 10 years and the
3        aggregate amount of abated taxes for all taxing
4        districts combined shall not exceed $4,000,000. The
5        abatement period may be renewed at the option of the
6        taxing districts.
7        (2) Horse racing. Any property in the taxing district
8    which is used for the racing of horses and upon which
9    capital improvements consisting of expansion, improvement
10    or replacement of existing facilities have been made since
11    July 1, 1987. The combined abatements for such property
12    from all taxing districts in any county shall not exceed
13    $5,000,000 annually and shall not exceed a period of 10
14    years.
15        (3) Auto racing. Any property designed exclusively for
16    the racing of motor vehicles. Such abatement shall not
17    exceed a period of 10 years.
18        (4) Academic or research institute. The property of any
19    academic or research institute in the taxing district that
20    (i) is an exempt organization under paragraph (3) of
21    Section 501(c) of the Internal Revenue Code, (ii) operates
22    for the benefit of the public by actually and exclusively
23    performing scientific research and making the results of
24    the research available to the interested public on a
25    non-discriminatory basis, and (iii) employs more than 100
26    employees. An abatement granted under this paragraph shall

 

 

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1    be for at least 15 years and the aggregate amount of abated
2    taxes for all taxing districts combined shall not exceed
3    $5,000,000.
4        (5) Housing for older persons. Any property in the
5    taxing district that is devoted exclusively to affordable
6    housing for older households. For purposes of this
7    paragraph, "older households" means those households (i)
8    living in housing provided under any State or federal
9    program that the Department of Human Rights determines is
10    specifically designed and operated to assist elderly
11    persons and is solely occupied by persons 55 years of age
12    or older and (ii) whose annual income does not exceed 80%
13    of the area gross median income, adjusted for family size,
14    as such gross income and median income are determined from
15    time to time by the United States Department of Housing and
16    Urban Development. The abatement shall not exceed a period
17    of 15 years, and the aggregate amount of abated taxes for
18    all taxing districts shall not exceed $3,000,000.
19        (6) Historical society. For assessment years 1998
20    through 2013, the property of an historical society
21    qualifying as an exempt organization under Section
22    501(c)(3) of the federal Internal Revenue Code.
23        (7) Recreational facilities. Any property in the
24    taxing district (i) that is used for a municipal airport,
25    (ii) that is subject to a leasehold assessment under
26    Section 9-195 of this Code and (iii) which is sublet from a

 

 

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

 

 

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1    may be effective for the entire term specified by the
2    taxing district, except the term of the abatement or annual
3    payments may not exceed 20 years.
4        (9) United States Military Public/Private Residential
5    Developments. Each building, structure, or other
6    improvement designed, financed, constructed, renovated,
7    managed, operated, or maintained after January 1, 2006
8    under a "PPV Lease", as set forth under Division 14 of
9    Article 10, and any such PPV Lease.
10        (10) Property located in a business corridor that
11    qualifies for an abatement under Section 18-184.10.
12    (b) Upon a majority vote of its governing authority, any
13municipality may, after the determination of the assessed
14valuation of its property, order the county clerk to abate any
15portion of its taxes on any property that is located within the
16corporate limits of the municipality in accordance with Section
178-3-18 of the Illinois Municipal Code.
18(Source: P.A. 96-1136, eff. 7-21-10.)
 
19    (35 ILCS 200/18-184.10 new)
20    Sec. 18-184.10. Business corridors; abatement.
21    (a) The county clerk shall abate property taxes levied by a
22taxing district, as approved under Section 18-165, on property
23that meets the following requirements:
24        (1) the property does not qualify as exempt property
25    under Section 15-95 of this Code; and

 

 

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1        (2) the property is situated in a business corridor
2    created by intergovernmental agreement between 2 adjoining
3    disadvantaged municipalities.
4    (b) A business corridor created under this Section shall
5encompass only territory along the common border of the
6municipalities that is (i) undeveloped or underdeveloped and
7(ii) not likely to be developed without the creation of the
8business corridor.
9    The intergovernmental agreement shall specify the
10territory to be included in the business corridor. The
11agreement shall also provide for the duration of an abatement
12under this Section and for any other provision necessary to
13carry out the provisions of this Section. No abatement under
14this Section shall exceed 10 years in duration. Upon adoption
15of the agreement provided for under this Section, the
16municipalities must deliver a certified copy of the agreement
17to the county clerk.
18    (c) Before adopting an intergovernmental agreement
19proposing the designation of a business corridor, each
20municipality, by its corporate authorities, must adopt an
21ordinance or resolution fixing a time and place for a public
22hearing. At least 10 days before adopting the ordinance or
23resolution establishing the time and place for the public
24hearing, the municipality must make available for public
25inspection the boundaries of the proposed business corridor.
26    At the public hearing, any interested person or affected

 

 

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1taxing district may file with the municipal clerk written
2objections to the business corridor and may be heard orally
3with respect to any issues embodied in the notice. The
4municipality must hear all protests and objections at the
5hearing, and the hearing may be adjourned to another date
6without further notice other than a motion entered upon the
7minutes fixing the time and place of the subsequent hearing. At
8the public hearing or at any time before the municipality
9adopts an ordinance approving the intergovernmental agreement,
10the municipality may make changes to the boundaries of the
11business corridor. Changes that add additional parcels of
12property to the proposed business corridor may be made only
13after each municipality gives notice and conducts a public
14hearing pursuant to the procedures set forth in this Section.
15    Except as otherwise provided in this Section, notice of the
16public hearing must be given by publication. Notice by
17publication must be given by publication at least twice. The
18first publication must be not more than 30 nor less than 10
19days before the hearing in a newspaper of general circulation
20within the taxing districts having property in the proposed
21business corridor. The notice must include the following:
22        (1) the time and place of the public hearing;
23        (2) the boundaries of the proposed business corridor by
24    legal description and by street location, if possible;
25        (3) a statement that all interested persons will be
26    given an opportunity to be heard at the public hearing; and

 

 

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1        (4) such other matters as the municipality may deem
2    appropriate.
3    (d) As used in this Section:
4    "Disadvantaged municipality" means a municipality with (i)
5a per capita equalized assessed valuation (EAV) less than 60%
6of the State average and (ii) more than 15% of its population
7below the national poverty level.".