HB5395ham001 102ND GENERAL ASSEMBLY

Rep. LaToya Greenwood

Filed: 2/28/2022

10200HB5395ham001 LRB102 25907 HLH 36741 a

AMENDMENT TO HOUSE BILL 5395

AMENDMENT NO. ______. Amend House Bill 5395 by replacing everything after the enacting clause with the following:

"Section 5. The Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by adding Section 605-1095 as follows:

(20 ILCS 605/605-1095 new)

Sec. 605-1095. Tax equivalent grants.

(a) If a retailer permanently ceases operations in a municipality and that retailer was responsible for at least 20% of the total use and occupation tax revenue received by the municipality in the calendar year immediately preceding the date the retailer permanently ceased operations in the municipality, then the municipality is entitled to a tax equivalent grant as provided in this Section. Grants under this Section shall be awarded, subject to appropriation, for fiscal years beginning on or after July 1, 2023.

(b) The corporate authorities of an eligible municipality may apply to the Department of Commerce and Economic Opportunity for a grant under this Section in the form and manner required by the Department of Commerce and Economic Opportunity by rule. Grants under this Section shall be awarded for each of the 5 State fiscal years to occur after the date the retailer permanently ceases operations in the municipality. The application shall contain the following information:

(1) the identity of the retailer that ceased operations;

(2) the portion of the use and occupation tax revenue that was received by the municipality in the calendar year immediately preceding the date the retailer permanently ceased operations in the municipality and that is attributable to the retailer; and

(3) the total use and occupation tax revenue received by the municipality in the calendar year immediately preceding the date the retailer permanently ceased operations in the municipality.

The Department of Revenue shall certify to the Department of Commerce and Economic Opportunity that the amounts reported by the municipality in items (1), (2), and (3) of this subsection (b) are correct.

(c) Grants shall be awarded according the following schedule:

(1) in the first fiscal year following the date the retailer permanently ceased operations in the municipality, the municipality shall receive 100% of the amount that is reported in item (2) of subsection (b) and that is verified by the Department of Revenue;

(2) in the second fiscal year following the date the retailer permanently ceased operations in the municipality, the municipality shall receive 80% of the amount that is reported in item (2) of subsection (b) and that is verified by the Department of Revenue;

(3) in the third fiscal year following the date the retailer permanently ceased operations in the municipality, the municipality shall receive 60% of the amount that is reported in item (2) of subsection (b) and that is verified by the Department of Revenue;

(4) in the fourth fiscal year following the date the retailer permanently ceased operations in the municipality, the municipality shall receive 40% of the amount that is reported in item (2) of subsection (b) and that is verified by the Department of Revenue; and

(5) in the fifth fiscal year following the date the retailer permanently ceased operations in the municipality, the municipality shall receive 20% of the amount that is reported in item (2) of subsection (b) and that is verified by the Department of Revenue.

(d) The Department of Commerce and Economic Opportunity shall adopt rules to implement this Section, including, but not limited to, rules concerning the application process and the time period during which applications for grants under this Section will be accepted.

(e) As used in this Section:

"Retailer" means a retailer or serviceman that is required to collect and remit tax under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, or the Retailers' Occupation Tax Act.

"Use and occupation tax revenue received by the municipality" means: (1) moneys allocated to the municipality from the proceeds collected under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act based on sales occurring in the municipality; and (2) the proceeds collected from any municipal use tax imposed by the municipality or any municipal occupation tax imposed by the municipality, if the tax is administered by the Department of Revenue and the proceeds are remitted to the municipality.

Section 10. The School Code is amended by adding Section 18-4.6 as follows:

(105 ILCS 5/18-4.6 new)

Sec. 18-4.6. Tax equivalent grants; State Capitol. Subject to appropriation, the school district in which the Illinois State Capitol Building is located is entitled to a tax equivalent grant as provided in this Section. The State Superintendent of Education shall annually direct the State Comptroller to pay the amount of the tax equivalent grant provided in this Section, and the State Comptroller shall draw his or her warrant upon the State Treasury for the payment of the grant. For fiscal year 2024 and each fiscal year thereafter, the grant shall equal 0.5% of the equalized assessed valuation of all land in the district owned by the State (computing that equalized assessed valuation by multiplying the average value per taxable acre of the school district by the total number of acres of land owned by the State). The school district superintendent shall certify to the State Board of Education the following matters: (1) that the State Capitol Building is located within the district; (2) the total land area of the district in acres; (3) the total ownership of the land of the State in the district in acres; (4) the total equalized assessed value of all the land in the district; (5) the rate of school tax payable in the year; and (6) the computed amount of the tax equivalent grant claimed. Certification for fiscal year 2024 grants under this Section shall be made no later than September 15, 2022. For subsequent fiscal years, the certification shall be made no later than July 1 of the calendar year in which the fiscal year begins. Failure of the school district superintendent to certify the claim for the tax equivalent grant on or before the date set forth in this Section shall constitute a forfeiture by the district of its right to the grant for the school year.

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