Illinois General Assembly - Full Text of HB1750
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Full Text of HB1750  102nd General Assembly

HB1750 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1750

 

Introduced 2/17/2021, by Rep. Chris Miller

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/18-165

    Amends the Property Tax Code. Provides that any taxing district may order the county clerk to abate any portion of its taxes, in any given year, on the essential business property that demonstrates financial hardship due to the restrictions on operations during the 2020 and 2021 tax year due to the Covid-19 public health emergency. Defines "essential business property". Effective immediately.


LRB102 14038 HLH 19390 b

 

 

A BILL FOR

 

HB1750LRB102 14038 HLH 19390 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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,
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
21        State during the immediately preceding year, or
22        expanding an existing facility, or (ii) any firm that
23        is used for the generation and transmission of

 

 

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1        electricity locating within the taxing district during
2        the immediately preceding year or expanding its
3        presence within the taxing district during the
4        immediately preceding year by construction of a new
5        electric generating facility that uses natural gas as
6        its fuel, or any firm that is used for production
7        operations at a new, expanded, or reopened coal mine
8        within the taxing district, that has been certified as
9        a High Impact Business by the Illinois Department of
10        Commerce and Economic Opportunity. The property of any
11        firm used for the generation and transmission of
12        electricity shall include all property of the firm
13        used for transmission facilities as defined in Section
14        5.5 of the Illinois Enterprise Zone Act. The abatement
15        shall not exceed a period of 10 years and the aggregate
16        amount of abated taxes for all taxing districts
17        combined shall not exceed $4,000,000.
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
23        10 years. The abatement shall be subject to the
24        following limitations:
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
6            year of abatement, 20% of the taxing district's
7            taxes from the new electric generating facility;
8                (ii) if the equalized assessed valuation of
9            the new electric generating facility is equal to
10            or 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
15            year of abatement, 35% of the taxing district's
16            taxes from the new electric generating facility;
17                (iii) if the equalized assessed valuation of
18            the new electric generating facility is equal to
19            or 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
24            year of abatement, 50% of the taxing district's
25            taxes from the new electric generating facility;
26                (iv) if the equalized assessed valuation of

 

 

HB1750- 4 -LRB102 14038 HLH 19390 b

1            the new electric generating facility is equal to
2            or 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;
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;
18                (vi) if the equalized assessed valuation of
19            the new electric generating facility is equal to
20            or greater than $150,000,000, then the abatement
21            may 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
24            and (ii) in any one year of abatement, 60% of the
25            taxing district's taxes from the new electric
26            generating facility.

 

 

HB1750- 5 -LRB102 14038 HLH 19390 b

1            The abatement is not effective unless the owner of
2        the new electric generating facility agrees to repay
3        to 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
6        that 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.
9            The authorization of taxing districts to abate
10        taxes under this subdivision (a)(1)(A-5) expires on
11        January 1, 2010.
12            (B) The property of any commercial or industrial
13        development of at least (i) 500 acres or (ii) 225 acres
14        in the case of a commercial or industrial development
15        that applies for and is granted designation as a High
16        Impact Business under paragraph (F) of item (3) of
17        subsection (a) of Section 5.5 of the Illinois
18        Enterprise Zone Act, having been created within the
19        taxing district. The abatement shall not exceed a
20        period of 20 years and the aggregate amount of abated
21        taxes for all taxing districts combined shall not
22        exceed $12,000,000.
23            (C) The property of any commercial or industrial
24        firm currently located in the taxing district that
25        expands a facility or its number of employees. The
26        abatement shall not exceed a period of 10 years and the

 

 

HB1750- 6 -LRB102 14038 HLH 19390 b

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

 

 

HB1750- 7 -LRB102 14038 HLH 19390 b

1    $5,000,000.
2        (5) Housing for older persons. Any property in the
3    taxing district that is devoted exclusively to affordable
4    housing for older households. For purposes of this
5    paragraph, "older households" means those households (i)
6    living in housing provided under any State or federal
7    program that the Department of Human Rights determines is
8    specifically designed and operated to assist elderly
9    persons and is solely occupied by persons 55 years of age
10    or older and (ii) whose annual income does not exceed 80%
11    of the area gross median income, adjusted for family size,
12    as such gross income and median income are determined from
13    time to time by the United States Department of Housing
14    and Urban Development. The abatement shall not exceed a
15    period of 15 years, and the aggregate amount of abated
16    taxes for all taxing districts shall not exceed
17    $3,000,000.
18        (6) Historical society. For assessment years 1998
19    through 2018, the property of an historical society
20    qualifying as an exempt organization under Section
21    501(c)(3) of the federal Internal Revenue Code.
22        (7) Recreational facilities. Any property in the
23    taxing district (i) that is used for a municipal airport,
24    (ii) that is subject to a leasehold assessment under
25    Section 9-195 of this Code and (iii) which is sublet from a
26    park district that is leasing the property from a

 

 

HB1750- 8 -LRB102 14038 HLH 19390 b

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

 

 

HB1750- 9 -LRB102 14038 HLH 19390 b

1    specified by the taxing district, except the term of the
2    abatement or annual payments may not exceed 20 years.
3        (9) United States Military Public/Private Residential
4    Developments. Each building, structure, or other
5    improvement designed, financed, constructed, renovated,
6    managed, operated, or maintained after January 1, 2006
7    under a "PPV Lease", as set forth under Division 14 of
8    Article 10, and any such PPV Lease.
9        (10) Property located in a business corridor that
10    qualifies for an abatement under Section 18-184.10.
11        (11) Under Section 11-15.4-25 of the Illinois
12    Municipal Code, property located within an urban
13    agricultural area that is used by a qualifying farmer for
14    processing, growing, raising, or otherwise producing
15    agricultural products.
16    (b) Upon a majority vote of its governing authority, any
17municipality may, after the determination of the assessed
18valuation of its property, order the county clerk to abate any
19portion of its taxes on any property that is located within the
20corporate limits of the municipality in accordance with
21Section 8-3-18 of the Illinois Municipal Code.
22    (c) Any taxing district may, upon a majority vote of its
23governing authority and after the determination of the
24assessed valuation of its property, order the clerk of that
25county to abate any portion of its taxes, in any given year, on
26the essential business property that demonstrates financial

 

 

HB1750- 10 -LRB102 14038 HLH 19390 b

1hardship due to the restrictions on operations during the 2020
2and 2021 tax year due to the Covid-19 public health emergency.
3For purposes of this subsection (c), "essential business
4property" means the commercial property owned by an owner of
5an essential business or operation, as defined in Executive
6Order 2020-10 dated March 20, 2020.
7(Source: P.A. 100-1133, eff. 1-1-19.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.