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1 | AN ACT concerning local government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Property Tax Code is amended by changing | ||||||
5 | Section 18-165 and by adding Section 18-184.10 as follows:
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6 | (35 ILCS 200/18-165)
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7 | Sec. 18-165. Abatement of taxes.
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8 | (a) Any taxing district, upon a majority vote of its | ||||||
9 | governing authority,
may, after the determination of the | ||||||
10 | assessed valuation of its property, order
the clerk of that | ||||||
11 | county to abate any portion of its taxes on the following
types | ||||||
12 | of property:
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13 | (1) Commercial and industrial.
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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, | ||||||
17 | storing, or processing recyclable
materials, locating | ||||||
18 | within the taxing district during the immediately | ||||||
19 | preceding
year from another state, territory, or | ||||||
20 | country, or having been newly created
within this State | ||||||
21 | during the immediately preceding year, or expanding an
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22 | existing facility, or (ii) any firm that is used for | ||||||
23 | the generation and
transmission of
electricity |
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1 | locating within the taxing district during the | ||||||
2 | immediately
preceding year or expanding its presence | ||||||
3 | within the taxing district during the
immediately | ||||||
4 | preceding year by construction of a new electric | ||||||
5 | generating
facility that uses natural gas as its fuel, | ||||||
6 | or any firm that is used for
production operations at a | ||||||
7 | new,
expanded, or reopened coal mine within the taxing | ||||||
8 | district, that
has been certified as a High Impact | ||||||
9 | Business by the Illinois Department of
Commerce and | ||||||
10 | Economic Opportunity. The property of any firm used for | ||||||
11 | the
generation and transmission of electricity shall | ||||||
12 | include all property of the
firm used for transmission | ||||||
13 | facilities as defined in Section 5.5 of the Illinois
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14 | Enterprise Zone Act. The abatement shall not exceed a | ||||||
15 | period of 10 years
and the aggregate amount of abated | ||||||
16 | taxes for all taxing districts combined
shall not | ||||||
17 | exceed $4,000,000.
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18 | (A-5) Any property in the taxing district of a new | ||||||
19 | electric generating
facility, as defined in Section | ||||||
20 | 605-332 of the Department of Commerce and
Economic | ||||||
21 | Opportunity Law of the Civil Administrative Code of | ||||||
22 | Illinois.
The abatement shall not exceed a period of 10 | ||||||
23 | years.
The abatement shall be subject to the following | ||||||
24 | limitations:
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25 | (i) if the equalized assessed valuation of the | ||||||
26 | new electric generating
facility is equal to or |
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1 | greater than $25,000,000 but less
than | ||||||
2 | $50,000,000, then the abatement may not exceed (i) | ||||||
3 | over the entire term
of the abatement, 5% of the | ||||||
4 | taxing district's aggregate taxes from the
new | ||||||
5 | electric generating facility and (ii) in any one
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6 | year of abatement, 20% of the taxing district's | ||||||
7 | taxes from the
new electric generating facility;
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8 | (ii) if the equalized assessed valuation of | ||||||
9 | the new electric
generating facility is equal to or | ||||||
10 | greater than $50,000,000 but less
than | ||||||
11 | $75,000,000, then the abatement may not exceed (i) | ||||||
12 | over the entire term
of the abatement, 10% of the | ||||||
13 | taxing district's aggregate taxes from the
new | ||||||
14 | electric generating facility and (ii) in any one
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15 | year of abatement, 35% of the taxing district's | ||||||
16 | taxes from the
new electric generating facility;
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17 | (iii) if the equalized assessed valuation of | ||||||
18 | the new electric
generating facility
is equal to or | ||||||
19 | greater than $75,000,000 but less
than | ||||||
20 | $100,000,000, then the abatement may not exceed | ||||||
21 | (i) over the entire term
of the abatement, 20% of | ||||||
22 | the taxing district's aggregate taxes from the
new | ||||||
23 | electric generating facility and (ii) in any one
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24 | year of abatement, 50% of the taxing district's | ||||||
25 | taxes from the
new electric generating facility;
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26 | (iv) if the equalized assessed valuation of |
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1 | the new electric
generating facility is equal to or | ||||||
2 | greater than $100,000,000 but less
than | ||||||
3 | $125,000,000, then the
abatement may not exceed | ||||||
4 | (i) over the entire term of the abatement, 30% of | ||||||
5 | the
taxing district's aggregate taxes from the new | ||||||
6 | electric generating facility
and (ii) in any one | ||||||
7 | year of abatement, 60% of the taxing
district's | ||||||
8 | taxes from the new electric generating facility;
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9 | (v) if the equalized assessed valuation of the | ||||||
10 | new electric generating
facility is equal to or | ||||||
11 | greater than $125,000,000 but less
than | ||||||
12 | $150,000,000, then the
abatement may not exceed | ||||||
13 | (i) over the entire term of the abatement, 40% of | ||||||
14 | the
taxing district's aggregate taxes from the new | ||||||
15 | electric generating facility
and (ii) in any one | ||||||
16 | year of abatement, 60% of the taxing
district's | ||||||
17 | taxes from the new electric generating facility;
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18 | (vi) if the equalized assessed valuation of | ||||||
19 | the new electric
generating facility is equal to or | ||||||
20 | greater than $150,000,000, then the
abatement may | ||||||
21 | not exceed (i) over the entire term of the | ||||||
22 | abatement, 50% of the
taxing district's aggregate | ||||||
23 | taxes from the new electric generating facility
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24 | and (ii) in any one year of abatement, 60% of the | ||||||
25 | taxing
district's taxes from the new electric | ||||||
26 | generating facility.
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1 | The abatement is not effective unless
the owner of | ||||||
2 | the new electric generating facility agrees to
repay to | ||||||
3 | the taxing district all amounts previously abated, | ||||||
4 | together with
interest computed at the rate and in the | ||||||
5 | manner provided for delinquent taxes,
in the event that | ||||||
6 | the owner of the new electric generating facility | ||||||
7 | closes the
new electric generating facility before the | ||||||
8 | expiration of the
entire term of the abatement.
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9 | The authorization of taxing districts to abate | ||||||
10 | taxes under this
subdivision (a)(1)(A-5) expires on | ||||||
11 | January 1, 2010.
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12 | (B) The property of any commercial or industrial
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13 | development of at least 500 acres having been created | ||||||
14 | within the taxing
district. The abatement shall not | ||||||
15 | exceed a period of 20 years and the
aggregate amount of | ||||||
16 | abated taxes for all taxing districts combined shall | ||||||
17 | not
exceed $12,000,000.
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18 | (C) The property of any commercial or industrial | ||||||
19 | firm currently
located in the taxing district that | ||||||
20 | expands a facility or its number of
employees. The | ||||||
21 | abatement shall not exceed a period of 10 years and the
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22 | aggregate amount of abated taxes for all taxing | ||||||
23 | districts combined shall not
exceed $4,000,000. The | ||||||
24 | abatement period may be renewed at the option of the
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25 | taxing districts.
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26 | (2) Horse racing. Any property in the taxing district |
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1 | which
is used for the racing of horses and upon which | ||||||
2 | capital improvements consisting
of expansion, improvement | ||||||
3 | or replacement of existing facilities have been made
since | ||||||
4 | July 1, 1987. The combined abatements for such property | ||||||
5 | from all taxing
districts in any county shall not exceed | ||||||
6 | $5,000,000 annually and shall not
exceed a period of 10 | ||||||
7 | years.
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8 | (3) Auto racing. Any property designed exclusively for | ||||||
9 | the racing of
motor vehicles. Such abatement shall not | ||||||
10 | exceed a period of 10 years.
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11 | (4) Academic or research institute. The property of any | ||||||
12 | academic or
research institute in the taxing district that | ||||||
13 | (i) is an exempt organization
under paragraph (3) of | ||||||
14 | Section 501(c) of the Internal Revenue Code, (ii)
operates | ||||||
15 | for the benefit of the public by actually and exclusively | ||||||
16 | performing
scientific research and making the results of | ||||||
17 | the research available to the
interested public on a | ||||||
18 | non-discriminatory basis, and (iii) employs more than
100 | ||||||
19 | employees. An abatement granted under this paragraph shall | ||||||
20 | be for at
least 15 years and the aggregate amount of abated | ||||||
21 | taxes for all taxing
districts combined shall not exceed | ||||||
22 | $5,000,000.
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23 | (5) Housing for older persons. Any property in the | ||||||
24 | taxing district that
is devoted exclusively to affordable | ||||||
25 | housing for older households. For
purposes of this | ||||||
26 | paragraph, "older households" means those households (i)
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1 | living in housing provided under any State or federal | ||||||
2 | program that the
Department of Human Rights determines is | ||||||
3 | specifically designed and operated to
assist elderly | ||||||
4 | persons and is solely occupied by persons 55 years of age | ||||||
5 | or
older and (ii) whose annual income does not exceed 80% | ||||||
6 | of the area gross median
income, adjusted for family size, | ||||||
7 | as such gross income and median income are
determined from | ||||||
8 | time to time by the United States Department of Housing and
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9 | Urban Development. The abatement shall not exceed a period | ||||||
10 | of 15 years, and
the aggregate amount of abated taxes for | ||||||
11 | all taxing districts shall not exceed
$3,000,000.
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12 | (6) Historical society. For assessment years 1998 | ||||||
13 | through 2013, the
property of an historical society | ||||||
14 | qualifying as an exempt organization under
Section | ||||||
15 | 501(c)(3) of the federal Internal Revenue Code.
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16 | (7) Recreational facilities. Any property in the | ||||||
17 | taxing district (i)
that is used for a municipal airport, | ||||||
18 | (ii) that
is subject to a leasehold assessment under | ||||||
19 | Section 9-195 of this Code and (iii)
which
is sublet from a | ||||||
20 | park district that is leasing the property from a
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21 | municipality, but only if the property is used exclusively | ||||||
22 | for recreational
facilities or for parking lots used | ||||||
23 | exclusively for those facilities. The
abatement shall not | ||||||
24 | exceed a period of 10 years.
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25 | (8) Relocated corporate headquarters. If approval | ||||||
26 | occurs within 5 years
after the effective date of this |
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1 | amendatory Act of the 92nd General Assembly,
any property | ||||||
2 | or a portion of any property in a taxing district that is | ||||||
3 | used by
an eligible business for a corporate headquarters | ||||||
4 | as defined in the Corporate
Headquarters Relocation Act. | ||||||
5 | Instead of an abatement under this paragraph (8),
a taxing | ||||||
6 | district may enter into an agreement with an eligible | ||||||
7 | business to make
annual payments to that eligible business | ||||||
8 | in an amount not to exceed the
property taxes paid directly | ||||||
9 | or indirectly by that eligible business to the
taxing | ||||||
10 | district and any other taxing districts for
premises | ||||||
11 | occupied pursuant to a written lease and may make those | ||||||
12 | payments
without the need for an annual appropriation. No | ||||||
13 | school district, however, may
enter into an agreement with, | ||||||
14 | or abate taxes for, an eligible business unless
the | ||||||
15 | municipality in which the corporate headquarters is | ||||||
16 | located agrees to
provide funding to the school district in | ||||||
17 | an amount equal to the amount abated
or paid by the school | ||||||
18 | district as provided in this paragraph (8).
Any abatement | ||||||
19 | ordered or
agreement entered into under this paragraph (8) | ||||||
20 | may be effective for the entire
term specified by the | ||||||
21 | taxing district, except the term of the abatement or
annual | ||||||
22 | payments may not exceed 20 years. | ||||||
23 | (9) United States Military Public/Private Residential | ||||||
24 | Developments. Each building, structure, or other | ||||||
25 | improvement designed, financed, constructed, renovated, | ||||||
26 | managed, operated, or maintained after January 1, 2006 |
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1 | under a "PPV Lease", as set forth under Division 14 of | ||||||
2 | Article 10, and any such PPV Lease.
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3 | (10) Property located in a business corridor that | ||||||
4 | qualifies for an abatement under Section 18-184.10. | ||||||
5 | (b) Upon a majority vote of its governing authority, any | ||||||
6 | municipality
may, after the determination of the assessed | ||||||
7 | valuation of its property, order
the county clerk to abate any | ||||||
8 | portion of its taxes on any property that is
located within the | ||||||
9 | corporate limits of the municipality in accordance with
Section | ||||||
10 | 8-3-18 of the Illinois Municipal Code.
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11 | (Source: P.A. 96-1136, eff. 7-21-10.)
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12 | (35 ILCS 200/18-184.10 new) | ||||||
13 | Sec. 18-184.10. Business corridors; abatement. | ||||||
14 | (a) Each taxing district may, by a majority vote of its | ||||||
15 | governing authority, order the county clerk to abate any | ||||||
16 | portion of its taxes on property that meets the following | ||||||
17 | requirements: | ||||||
18 | (1) the property does not qualify as exempt property | ||||||
19 | under Section 15-95 of this Code; and | ||||||
20 | (2) the property is situated in a business corridor | ||||||
21 | created by intergovernmental agreement between 2 adjoining | ||||||
22 | disadvantaged municipalities. | ||||||
23 | An abatement under this Section may not exceed a period of | ||||||
24 | 10 years. | ||||||
25 | (b) A business corridor created under this Section shall |
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1 | encompass only territory along the common border of the | ||||||
2 | municipalities that is (i) undeveloped or underdeveloped and | ||||||
3 | (ii) not likely to be developed without the creation of the | ||||||
4 | business corridor. | ||||||
5 | The intergovernmental agreement shall specify the | ||||||
6 | territory to be included in the business corridor. The | ||||||
7 | agreement shall also provide for the duration of an abatement | ||||||
8 | under this Section and for any other provision necessary to | ||||||
9 | carry out the provisions of this Section. No abatement under | ||||||
10 | this Section shall exceed 10 years in duration. Upon adoption | ||||||
11 | of the agreement provided for under this Section, the | ||||||
12 | municipalities must deliver a certified copy of the agreement | ||||||
13 | to the county clerk. | ||||||
14 | (c) Before adopting an intergovernmental agreement | ||||||
15 | proposing the designation of a business corridor, each | ||||||
16 | municipality, by its corporate authorities, must adopt an | ||||||
17 | ordinance or resolution fixing a time and place for a public | ||||||
18 | hearing. At least 10 days before adopting the ordinance or | ||||||
19 | resolution establishing the time and place for the public | ||||||
20 | hearing, the municipality must make available for public | ||||||
21 | inspection the boundaries of the proposed business corridor. | ||||||
22 | At the public hearing, any interested person or affected | ||||||
23 | taxing district may file with the municipal clerk written | ||||||
24 | objections to the business corridor and may be heard orally | ||||||
25 | with respect to any issues embodied in the notice. The | ||||||
26 | municipality must hear all protests and objections at the |
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1 | hearing, and the hearing may be adjourned to another date | ||||||
2 | without further notice other than a motion entered upon the | ||||||
3 | minutes fixing the time and place of the subsequent hearing. At | ||||||
4 | the public hearing or at any time before the municipality | ||||||
5 | adopts an ordinance approving the intergovernmental agreement, | ||||||
6 | the municipality may make changes to the boundaries of the | ||||||
7 | business corridor. Changes that add additional parcels of | ||||||
8 | property to the proposed business corridor may be made only | ||||||
9 | after each municipality gives notice and conducts a public | ||||||
10 | hearing pursuant to the procedures set forth in this Section. | ||||||
11 | Except as otherwise provided in this Section, notice of the | ||||||
12 | public hearing must be given by publication. Notice by | ||||||
13 | publication must be given by publication at least twice. The | ||||||
14 | first publication must be not more than 30 nor less than 10 | ||||||
15 | days before the hearing in a newspaper of general circulation | ||||||
16 | within the taxing districts having property in the proposed | ||||||
17 | business corridor. The notice must include the following: | ||||||
18 | (1) the time and place of the public hearing; | ||||||
19 | (2) the boundaries of the proposed business corridor by | ||||||
20 | legal description and by street location, if possible; | ||||||
21 | (3) a statement that all interested persons will be | ||||||
22 | given an opportunity to be heard at the public hearing; and | ||||||
23 | (4) such other matters as the municipality may deem | ||||||
24 | appropriate. | ||||||
25 | (d) As used in this Section: | ||||||
26 | "Disadvantaged municipality" means a municipality with (i) |
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1 | a per capita equalized assessed valuation (EAV) less than 60% | ||||||
2 | of the State average and (ii) more than 15% of its population | ||||||
3 | below the national poverty level.
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