Full Text of HB1218 103rd General Assembly
HB1218 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB1218 Introduced 1/31/2023, by Rep. Kevin Schmidt SYNOPSIS AS INTRODUCED: |
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Amends the Property Tax Code. Provides that a taxing district may abate a portion of its taxes on property upon which affordable housing has been or will be constructed in a development mixed with commercial property. Provides that the value of the abatement may not exceed $500,000.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Property Tax Code is amended by changing | 5 | | Section 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 | 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:
| 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 |
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| 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.
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| 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
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| 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 |
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| 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
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| 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 |
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| 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 | | (12) Property upon which affordable housing has been | 17 | | or will be constructed in a development mixed with | 18 | | commercial property. The value of the abatement under this | 19 | | paragraph (12) may not exceed $500,000. | 20 | | (b) Upon a majority vote of its governing authority, any | 21 | | municipality
may, after the determination of the assessed | 22 | | valuation of its property, order
the county clerk to abate any | 23 | | portion of its taxes on any property that is
located within the | 24 | | corporate limits of the municipality in accordance with
| 25 | | Section 8-3-18 of the Illinois Municipal Code.
| 26 | | (Source: P.A. 100-1133, eff. 1-1-19.)
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