Public Act 096-1136
 
HB4723 EnrolledLRB096 15650 HLH 30886 b


  
    AN ACT concerning revenue.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    Section 5. The Property Tax Code is amended  by changing 
Section 18-165 as follows:
 


    (35 ILCS 200/18-165)




    Sec. 18-165. Abatement of taxes. 

    (a) Any taxing district, upon a majority vote of its 
governing authority,
may, after the determination of the 
assessed valuation of its property, order
the clerk of that 
county to abate any portion of its taxes on the following
types 
of property:


        (1) Commercial and industrial.


            (A) The property of any commercial or industrial 
        firm,
including but not limited to the property of (i) 
        any firm that
is used for collecting, separating, 
        storing, or processing recyclable
materials, locating 
        within the taxing district during the immediately 
        preceding
year from another state, territory, or 
        country, or having been newly created
within this State 
        during the immediately preceding year, or expanding an

        existing facility, or (ii) any firm that is used for 
        the generation and
transmission of
electricity 
        locating within the taxing district during the 
        immediately
preceding year or expanding its presence 
        within the taxing district during the
immediately 
        preceding year by construction of a new electric 
        generating
facility that uses natural gas as its fuel, 
        or any firm that is used for
production operations at a 
        new,
expanded, or reopened coal mine within the taxing 
        district, that
has been certified as a High Impact 
        Business by the Illinois Department of
Commerce and 
        Economic Opportunity.  The property of any firm used for 
        the
generation and transmission of electricity shall 
        include all property of the
firm used for transmission 
        facilities as defined in Section 5.5 of the Illinois

        Enterprise Zone Act.  The abatement shall not exceed a 
        period of 10 years
and the aggregate amount of abated 
        taxes for all taxing districts combined
shall not 
        exceed $4,000,000.


            (A-5) Any property in the taxing district of a new 
        electric generating
facility, as defined in Section 
        605-332 of the Department of Commerce and
Economic 
        Opportunity Law of the Civil Administrative Code of 
        Illinois.
The abatement shall not exceed a period of 10 
        years.
The abatement shall be subject to the following 
        limitations:


                (i) if the equalized assessed valuation of the 
            new electric generating
facility is equal to or 
            greater than $25,000,000 but less
than 
            $50,000,000, then the abatement may not exceed (i) 
            over the entire term
of the abatement, 5% of the 
            taxing district's aggregate taxes from the
new 
            electric generating facility and (ii) in any one

            year of abatement, 20% of the taxing district's 
            taxes from the
new electric generating facility;


                (ii) if the equalized assessed valuation of 
            the new electric
generating facility is equal to or 
            greater than $50,000,000 but less
than 
            $75,000,000, then the abatement may not exceed (i) 
            over the entire term
of the abatement, 10% of the 
            taxing district's aggregate taxes from the
new 
            electric generating facility and (ii) in any one

            year of abatement, 35% of the taxing district's 
            taxes from the
new electric generating facility;


                (iii) if the equalized assessed valuation of 
            the new electric
generating facility
is equal to or 
            greater than $75,000,000 but less
than 
            $100,000,000, then the abatement may not exceed 
            (i) over the entire term
of the abatement, 20% of 
            the taxing district's aggregate taxes from the
new 
            electric generating facility and (ii) in any one

            year of abatement, 50% of the taxing district's 
            taxes from the
new electric generating facility;


                (iv) if the equalized assessed valuation of 
            the new electric
generating facility is equal to or 
            greater than $100,000,000 but less
than 
            $125,000,000, then the
abatement may not exceed 
            (i) over the entire term of the abatement, 30% of 
            the
taxing district's aggregate taxes from the new 
            electric generating facility
and (ii) in any one 
            year of abatement, 60% of the taxing
district's 
            taxes from the new electric generating facility;


                (v) if the equalized assessed valuation of the 
            new electric generating
facility is equal to or 
            greater than $125,000,000 but less
than 
            $150,000,000, then the
abatement may not exceed 
            (i) over the entire term of the abatement, 40% of 
            the
taxing district's aggregate taxes from the new 
            electric generating facility
and (ii) in any one 
            year of abatement, 60% of the taxing
district's 
            taxes from the new electric generating facility;


                (vi) if the equalized assessed valuation of 
            the new electric
generating facility is equal to or 
            greater than $150,000,000, then the
abatement may 
            not exceed (i) over the entire term of the 
            abatement, 50% of the
taxing district's aggregate 
            taxes from the new electric generating facility

            and (ii) in any one year of abatement, 60% of the 
            taxing
district's taxes from the new electric 
            generating facility.


            The abatement is not effective unless
the owner of 
        the new electric generating facility agrees to
repay to 
        the taxing district all amounts previously abated, 
        together with
interest computed at the rate and in the 
        manner provided for delinquent taxes,
in the event that 
        the owner of the new electric generating facility 
        closes the
new electric generating facility before the 
        expiration of the
entire term of the abatement.


            The authorization of taxing districts to abate 
        taxes under this
subdivision (a)(1)(A-5) expires on 
        January 1, 2010.


            (B) The property of any commercial or industrial

        development of at least 500 acres having been created 
        within the taxing
district.  The abatement shall not 
        exceed a period of 20 years and the
aggregate amount of 
        abated taxes for all taxing districts combined shall 
        not
exceed $12,000,000.


            (C) The property of any commercial or industrial 
        firm currently
located in the taxing district that 
        expands a facility or its number of
employees. The 
        abatement shall not exceed a period of 10 years and the

        aggregate amount of abated taxes for all taxing 
        districts combined shall not
exceed $4,000,000. The 
        abatement period may be renewed at the option of the

        taxing districts.


        (2) Horse racing.  Any property in the taxing district 
    which
is used for the racing of horses and upon which 
    capital improvements consisting
of expansion, improvement 
    or replacement of existing facilities have been made
since 
    July 1, 1987.  The combined abatements for such property 
    from all taxing
districts in any county shall not exceed 
    $5,000,000 annually and shall not
exceed a period of 10 
    years.


        (3) Auto racing.  Any property designed exclusively for 
    the racing of
motor vehicles. Such abatement shall not 
    exceed a period of 10 years.


        (4) Academic or research institute.  The property of any 
    academic or
research institute in the taxing district that 
    (i) is an exempt organization
under paragraph (3) of 
    Section 501(c) of the Internal Revenue Code, (ii)
operates 
    for the benefit of the public by actually and exclusively 
    performing
scientific research and making the results of 
    the research available to the
interested public on a 
    non-discriminatory basis, and (iii) employs more than
100 
    employees.  An abatement granted under this paragraph shall 
    be for at
least 15 years and the aggregate amount of abated 
    taxes for all taxing
districts combined shall not exceed 
    $5,000,000.


        (5) Housing for older persons.  Any property in the 
    taxing district that
is devoted exclusively to affordable 
    housing for older households.  For
purposes of this 
    paragraph, "older households" means those households (i)

    living in housing provided under any State or federal 
    program that the
Department of Human Rights determines is 
    specifically designed and operated to
assist elderly 
    persons and is solely occupied by persons 55 years of age 
    or
older and (ii) whose annual income does not exceed 80% 
    of the area gross median
income, adjusted for family size, 
    as such gross income and median income are
determined from 
    time to time by the United States Department of Housing and

    Urban Development.  The abatement shall not exceed a period 
    of 15 years, and
the aggregate amount of abated taxes for 
    all taxing districts shall not exceed
$3,000,000.


        (6) Historical society.  For assessment years 1998 
    through 2013 2008, the
property of an historical society 
    qualifying as an exempt organization under
Section 
    501(c)(3) of the federal Internal Revenue Code.


        (7) Recreational facilities.  Any property in the 
    taxing district (i)
that is used for a municipal airport, 
    (ii) that
is subject to a leasehold assessment under 
    Section 9-195 of this Code and (iii)
which
is sublet from a 
    park district that is leasing the property from a

    municipality, but only if the property is used exclusively 
    for recreational
facilities or for parking lots used 
    exclusively for those facilities.  The
abatement shall not 
    exceed a period of 10 years.


        (8) Relocated corporate headquarters.  If approval 
    occurs within 5 years
after the effective date of this 
    amendatory Act of the 92nd General Assembly,
any property 
    or a portion of any property in a taxing district that is 
    used by
an eligible business for a corporate headquarters 
    as defined in the Corporate
Headquarters Relocation Act.  
    Instead of an abatement under this paragraph (8),
a taxing 
    district may enter into an agreement with an eligible 
    business to make
annual payments to that eligible business 
    in an amount not to exceed the
property taxes paid directly 
    or indirectly by that eligible business to the
taxing 
    district and any other taxing districts for
premises 
    occupied pursuant to a written lease and may make those 
    payments
without the need for an annual appropriation. No 
    school district, however, may
enter into an agreement with, 
    or abate taxes for, an eligible business unless
the 
    municipality in which the corporate headquarters is 
    located agrees to
provide funding to the school district in 
    an amount equal to the amount abated
or paid by the school 
    district as provided in this paragraph (8).
Any abatement 
    ordered or
agreement entered into under this paragraph (8) 
    may be effective for the entire
term specified by the 
    taxing district, except the term of the abatement or
annual 
    payments may not exceed 20 years.
        (9) United States Military Public/Private Residential 
    Developments.  Each building, structure, or other 
    improvement designed, financed, constructed, renovated, 
    managed, operated, or maintained after January 1, 2006 
    under a "PPV Lease", as set forth under Division 14 of 
    Article 10, and any such PPV Lease.


    (b) Upon a majority vote of its governing authority, any 
municipality
may, after the determination of the assessed 
valuation of its property, order
the county clerk to abate any 
portion of its taxes on any property that is
located within the 
corporate limits of the municipality in accordance with
Section 
8-3-18 of the Illinois Municipal Code.

(Source: P.A. 93-270, eff. 7-22-03; 94-793, eff. 5-19-06; 
94-974, eff. 6-30-06.)

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